Khajitt are genetically compatible with Elves as well according to the lore.
Can I please have a source for this?
And there are theories that early humans did cross breed with Neanderthals, so there you go.
There is now evidence that most people of Asian or European descent have a significant proportion of Neanderthal genes.
http://news.bbc.co.uk/2/hi/science/nature/8660940.stm
Wood elves are like down syndrome kids.
...How so? Because they're short? o_O;
And now for my own thoughts.
I don't think I have a least favorite race per se, but I gotta say that Argonians were wayyyy too shiny in Skyrim. Like they were covered in oil or something. Their faces and everything else from the neck up were pretty badass-looking but their bodies just look like twisted sticks. Also the elves' faces were really ugly in Skyrim.
Also I have seen a lot of people say that they hate Bosmer, but I have yet to hear a decent explanation as to why. Is it just because they had annoying voices in Morrowind? Because they totally did, but I don't see why they are deserving of such undying hatred just for that.
I don't have a favorite race either but I tend to be partial to Dunmer. I freakin' loved Morrowind.
P.S. Please stop saying Thalmor are a race. It just makes the people who played any game before Skyrim laugh at you.