Most Khajitt are traders and theives and despise weapons, beacuse they love to tear crap to apart with there bare Hands a Khajiit versus a Nord unarmed combat Khajiit wins every time.. Pretty sure it was on an episode of Deadliest Warrior. lol
I'm a big fan of Nords, play em all the time, my Nord in Skyrim is 46 but it doesn't change my preception of the Khajiit at all.
so i started a Khajiit for the first time ever playing TES and LOVED IT.... Puss is currently 51. And yes I named him that cause I thought id get sick of him..

he better be wearin boots.

Of course..hahaha
My daughter named him. Just kidding she only 11 months old

Pushing them out of your country after they've been severely weakened fighting in another province is one thing. Ensuring they never do it again is another. Better to fight them in Cyrodiil and Valenwood than fight them in Skyrim. Better for both Skyrim and Cyrodiil.

As for forming an alliance with Hammerfell, it's possible, but it's never hinted or suggested. And it's similarly possible for the Empire to reconcile with them.

There is a much higher chance they would join up with an Independent Skyrim, the redgaurds probably despise the empire now seeing as they abandoned them then signed off part of their country to the dominion.

There's also a much higher chance that the Imperials will seek to reconcile with the Redguards than the Stormcloaks seeking to ally with them. Not once have I heard of any Stormcloak mentioning a possible alliance with Hammerfell, yet there is talk that the Empire and Hammerfell need to reconcile.

And even if they did ally with Hammerfell, there's still the small problem that neither province borders any Dominion territory.

They do mention trying to ally with High Rock though.

Well, for dominion to get to Skyrim they would have to go through Cyrodil, and if not, then go all around the continent by sea and hammerfell makes up a good chunk of coast.
And I have never heard of the empire reconciling with hammerfell. Hammerfell hate and I mean HATE the empire now and will stay independent now. And i never said there was evidence of it, but I'm just saying there is a high chance that Skyrim and hammerfell could team up.

Legate Quintius (author of http://www.uesp.net/wiki/Lore:The_Great_War_%28book%29) seems convinced that the Empire needs to reconcile with Hammerfell. Of course, we don't actually know if Cyrodiil is doing any such thing in the meantime, but we also know that the Stormcloaks have never announced or made known any plans to ally with them. And unless the Stormcloaks and Redguards have some incredible naval capabilities, said alliance wouldn't amount to more than fighting the Thalmor defensively, assuming they actually invade Hammerfell and not Cyrodiil.

Empire - Unable to sustain itself. No power left, being steamrolled by the Thalmor. Complete and utter chaos within the Empire's ranks. Still able to hold strong for now though and with Skyrim taken, it's an easy route to establish connection with Hammerfell, but it doesn't seem like they want to go back to an Empire that abandoned them.

No future possibilities other than being taken down by another force. The Empire is at its dying breath but its resources are still unmatched. Just as Rome was destroyed by the Barbarians attacking and the split between West Rome and East Rome, the Empire will have to face a slow and painful death later on.

However, the Empire is still an already established government that knows how to manage Tamriel using traditional laws and regulations. It proves to be somewhat effective and still holds to be a dominant power, even if the Empire is an incredibly weaker force than during the Oblivion Crisis and before.

A Second Great War will be a lot more broadened than a Stormcloak victory, causing a higher chance of defeat but also a higher reward opportunity.

Stormcloaks - New and fresh Empire. Lots of power within their ranks but don't have the sheer numbers or resources that the Empire has. A Stormcloak victory means they establish a new Empire and Skyrim is kept safe from the Thalmor. Ulfric used to be a Thalmor pawn but now is rebelling against them, along with the Empire.

The Stormcloaks are very fierce nationalists though. They care for only the Men of Skyrim (Humans). They're very xenophobic and don't like foreigners, even if they're Nords. Their army is just as strong, although lacking resources, and has more loyalty for the cause.

In Long terms, the Stormcloaks will cause a new Empire to form, most likely absorbing the abandoned Hammerfell. With Skyrim completely liberated from the Empire, it's an easy gateway to attack Northern Cyrodiil. Skyrim itself is an inpenetrable fortress by itself. Thalmor forces will have trouble even getting in the borders, much less fighting against guerrillas.
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In conclusion, pick whomever you think is going to be best.

One Legate thinking they screwed up concerning Hammerfell doesnt mean that the redguards will be all like "its all good!" and join back up again. Plus like stated above, there is talk of Skyrim and High rock getting together.

Speculation that they could ally with Hammerfell or suggestion that they want to ally with High Rock does not mean they're actually planning on allying with the Hammerfell either.

Neither does speculation that the Hammerfell will want to join back with the empire..

I never said that Hammerfell actually wanted to.

u know whats sad, that the same Dunmer that the 2 nords was threating at the beginning thats got everyone thinking that the stormcloaks are racists and evil, if u follow the same dunmer lady to the docks where she works and listen to the stuff shes says about the argonians.

and if u still dont gte it, then for example replace argonian with black and then tell me that aint the racists [censored] u ever heard. That whole trio the dunmer and the 2 drunk nords were basically the most racist people in the city lol.

i like to imagine the 2 drunks were giving her a taste of her own racism.

If I remember correctly, Elisif said she respected the idea of rebellion and her husband would have too if Ulfric hadn't been so antagonistic. The reason they held off was that Skyrim is dependent on food exported from the Empire. Ulfric may win the rebellion but watch the prices rise...

If the stormcloaks gain independance I see it shaping up like the aftermath of the American revolutionary war.France gave a great deal of aid to the rebels and after the war ended what the French wanted was pretty much for themselves to replace the British as overlords after all who else could these upstart yokels turn to for aid? the Brits who they had just ended a long costly war with not likely.

The same with the stormcloaks.They don't hate the Empire they just don't want to be ruled by a group they see as weak.After Skyrim gains independance They have no reason not to help Cyrodil if the Thalmor invade.The Cyrodils are pragmatists so even if they lose Skyrim when the hordes of Khajit Bosmer and Altmer are laying waste to their home they are going to what?Refuse help from the Nords because they didn't play nice before.Only if they are stupid.

I've gotten some great insight into this. Thanks for the input, everyone.

I go with the Legion almost all the time but it's up to you.

I take into account the one well-respected older warrior in Ulfric's own court (I forget his name) that gives you a mission to wipe out a group of bandits that have been attacking and killing Dunmers because Ulfric refuses to do so. The only time Ulfric willl deal with bandits is when they attack Nords. Anybody else, whether Argonians, Khajit, or any kind of Elves, NOTHING is done about it.
Is the dark elf woman racist? Maybe. That doesn't excuse the Stormcloaks' bahavior. IS Ulfric racist? I believe so, he just hides it better than some of his men.
Re: my position on the OP's question, is pretty much dependent wholly on how you are RPing your character and what race they are. Practically speaking, overall, one side is no better than the other.