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Even if we aren't able to quest in other factions' territories, will we at least be able to explore them? For example, will a member of the Aldmeri Dominion be able to explore Morrowind or Skyrim?
You will be able to quest in other faction territory. As soon as you finish your alliance's area you are able to move on to the next alliances area - you can complete all 3 if you wish.