You know what keeps striking me about Skyrim? It seems almost scared of its own lore.
That armour might be Dwarven, but those bowls are Dwemer. See those Falmer? They’re sub-human creatures of the dark so they’re allowed a funny name, but the civilised Dunmer of the overworld are consistently referred to as Dark Elves instead.
Morrowind was at its most compelling when it embraced that alternative world. I understand the more traditional terms like “elf” and “dwarf” are hangovers from Arena, before they invented all the cool stuff, but I’d be a-okay with any retcon to completely drop those bits.
Stop trying to become just-another-Tolkienesque-fantasy, Elder Scrolls series. I know you can do it! (Then again, is this leaning towards tradition why Skyrim sold a bajillion copies?)