A couple of years ago, you introduced hybridization, which instead of enriching build variety, killed the distinction between magicka and stamina builds, essentially turning everyone into a copy of each other, especially in PvP.

Later, Arcanist dominated the game for 2 years, and then subclassing, instead of fixing class variety, turned every other class into Arcanist. Since its release, the ESO team repeats "play the way you want," but with each update, variety has been erased from the game bit by bit.

Now that you are on track to fix the mismanagement of the past 3–4 years, it is also time to fix racial passives. A quick analysis of your endgame playerbase statistics will show how Dark Elf and High Elf dominate the endgame population. Even if the damage difference between each race is quite small, it still pushes quite a lot of your players to pick whichever race is doing a tiny bit more damage.

When it comes to tanks and healers, racial passives don't matter as much since the bonuses for those are easily accessible by other means. You can work around skill cost reductions and extra resistances, and you are almost never in a position to spam ultimates, so you can live without the extra ultimate generation of Nords. However, it is not the same with races that benefit DPS.

Why not rework racial passives and turn them all into unique utilities so people who feel forced to play Dark Elf, High Elf, and recently Khajiit because of the DPS boost can actually play whatever appeals to them?

Argonian swimming speed and extra potion utility, Orc movement speed and sprint cost reduction, Breton proficiency in light armor, and Wood Elf disease and poison resistance are all great examples of proper racial passives that work alongside the lore and characteristics of each race without giving them a pointless advantage over other races. Removing damage bonuses from racial passives would only work in favor of freedom of choice.