I think this could really potentially create better balance for all.
Each faction would have 2 small passive bonuses that you'd gain access to based on your race's native faction (eg. Nords, Dunmer, and Argonians would only have access to these).
And you'd also get access to 2 more small bonuses based on whichever faction you actually choose to take part in.
The first two (we'll call them "NF passives" for "Native Faction") NF passives will improve on areas of weakness among the races of a faction, while the CF passives (Chosen Faction)
will be more geared towards enhancing the strengths of a faction.
For example:
EP NF Passives:
+6% Stam Recovery
+4% Spell Critical
EP CF Passives
+6% Healing Done
+4% Max Stamina
DC NF Passives
+4% Weapons Critical
+6% Magic Recovery
DC CF Passives
+2% to all elemental damage
+5% Poison Resistance
AD NF Passives
+6% Health recovery
+5% Critical Resistance
AD CF Passives
+3% to Shock and Disease damage
+2% Critical Damage Modifier
These might not all be 100% ideal, as I mostly play on EP and have little experience with the other 2 factions, but I think this could help with both balance and build diversity.
Imperials would get a unique NF passive Btw.
Any thoughts, insights, or improvements?