I hear this argument re stated a lot by pro imperials but the argument is completely ridiculous. Let's start with the Argonians
The argonians are not allowed to live in the city of windhelm but consider that even if you complete the imperial quest line the new jarl free winter still won't let them in. Why do you think that is? Would this be a valid argument to say that the imperials are also racist? Well the answer is no. Both free winter and ulfric know that the dunmer and argonians have had a horrible history. Dunmer have been enslaving argoanians for years and at one point the argonians let a full scale invasion on the dunmer. Ulfric knows that if he lets them in there would be chaos and pandemonium on the streets and a civil war leader cannot handle that. The stormcloaks hardly have enough men to investigate the butcher. Having a race war in the streets is the last thing a leader would want. Even the imperials can understand this. We know they are still hostile because rolf stone fist even points out that they would tear each other to pieces if given the chance.
On the docks there is one captain who will not pay the argonians the same wage as a nord but this man isn't a stormcloak as far as I know. He is a dock worker. This guy should not be the avatar for the stormcloak rebellion since he isn't a stormcloak. Neither is rolf stonefist. \
People are so quick to dismiss the cause because they seem rolf and aegnir harassing a dark elf upon the first entry to windhelm but remember that rolf isn't a stormcloak, He is a drunk who stumbles out of the bar every night to rant at the grey quarter. Aegnir is the only one who has ever been a stormcloak but is an ex stormcloak. Why are people using a drunk and a beggar as the avatars for the stormcloaks. None of these people are stormcloaks and the things rolf, the dock worker and aegnir say have never been in the official stormcloak cause, It's guilt by association to use these three as arguments against the rebellion.
The battlecry "skyrim belongs to the nords" Is a rallying cry against foreign invaders "The thalmor" They have never once said they wanted to expel all non nords or start an ethnic cleansing. Free winter claims this to be the case but to believe so would require one to ignore the fact that some of the wealthiest houses in windhelm belong to non nords.
Infact by talking to the NPCs there, There is no evidence that some of the non nords are even harassed.
Nurelion is a high elf who runs white phial Ulundil is a high elf who runs the stables Arivanya, High elf, wife of Ulundil Niranye- runs the weapon store in the market
Nirayne will even tell you that she was looked down upon at first but after she pulled her own weight the nords respected her and she willtell you that the reason the living conditions the dunmer put up with is because they have no intention of pulling their weight, They just sit around and complain.
What does that tell you when you know that a high elf, the race of the thalmor that have been oppressing them for the past 25 years or so owns one of the fanciest houses in windhelm and has the respect of the nords? I don't see ulfric or galmar talking about removing her? Free winter is completely wrong. The other High elves I mentioned also get by without any hate all because they pull their own weight and you can't say that these people are exceptions because these are 100 percent of the high elves living in windhelm. All of them.
Imperials, The race of the empire that the stormcloaks are trying to defeat are also treated well witin the city
Viola just like Nirayne has one of the best houses in the city Orthus Endario- manager of the East Empire Trading Company Quintus Navale Nurelion's assistant in The White Phial
Calixto Corrium owner of the Museum of oddities
Adonato Leotelli the playwrite
These people don't face much persecution either
Finally dunmer, Not all of them live in the grey quarter,
Idesa Sadri lives in the cruel sea manor
Belyn Hlaalu may live in the grey quarter but he owns property outside of the city. He could very well choose to live elsewhere and
Luaffyn I can only assume stays in candlehearth but who knows because she is a bard 24 hours a day which makes no sense but you get the point.
This shows me that the stormcloaks or government of windhelm are no racist organizations, Those who pull their weight get equal treatment - The finest houses, the respect of the nords comes from those willing to bleed for their cause or help the city thrive. Think of it this way. The decree of monumnent grants the dunmer the right to live in the land without paying taxes, If they don't pay taxes then what obligation does ulfirc have to renovate the grey quarter? You know that the only reason our modern cities have roads Is because of taxes. They get to squat on the land free of charge so they are ultimately the ones in the best position to renovate it if they so desire. But sitting around in the dark quarter writing books about enslaving the nords and complaining without pulling their weight isn't going to get them anywhere in the city. Nirayne and Hlallu mention this and their will to work to improve the city yields results,
Now onto ulfric, It's important to note that he is trying to bring the Bretons into the alliance, Why would he want a race of half elves fighting form him if he was truly racist? Free winter makes the argument that ulfric won't do anything when a khajit caravan is attacked but will jump at the opportunity to defend nords. I would like to answer this by saying. Why should ulfric bleed for those who won't bleed for him? I can't confirm that these are the same nords supporting his cause but wouldn't it make sense to support your soliders before you would send off your limited supplies and men on freeloaders or those who wouldn't contribute?
Then citizens in whiterun when it is captured also make claims to indicate the nords are racist, They won't buy from arcadia out of fear of being poisoned but will easily increase the taverns' business. Why do we assume the distrust came from racism? Would it not be a reasonable for a bit of fear of poisoning in a recently captured city? and what makes the avenicchi think the sales are only because her husband is a nord?
In conclusion I don't believe the stormcloaks are racists, They accept people like your character regardless of race provided you pull your weight and help their cause and don't judge them based on a few assholes In windhelm. Ralof was never like that. So why make them the face of the rebellion?