Lorkhan (the Elvish Shor) tricked the other gods into creating Mundus, thereby sundering the race from the imperishable spirit. Men see this not as a trick but as a gift.
Trinimac ripped the heart of Lorkhan from his chest and Auri-El put it on his arrow and shot it into the sea, but not before the Heart laughed at their futility. Men and Elves haven't seen eye to eye since.
I think this game has balanced the races well, and as it stands now, without some major catalyst, I don’t think one race can dominate all of the elders scroll world. I feel that some of the races could give it a good go but ultimately I see them falling short as other races band together to stave off the conquest. I think the elves are most likely the strongest on paper but I don’t think they have the numbers to achieve any decisive world domination.
If the gauntlet was thrown down and a all out fight to the death between all races was to occur I think it would most likely be one of the smaller weaker races that dominates, biding their time watching, waiting, until all the main forces are depleted fighting one another then moving in for the mop up. Most likely in this case some unexpected element like vampires might sneak in for the win. Imagine how easy it would be for them to build numbers up in a massive war, they would thrive in the ensuring chaos.
That’s just my two bob.
I would like to see the Orc's win but there is no chance of that happening....