There's a very important difference between unviable and unoptimal. Yes, racial choices are important for min-maxing, but only if you want to min-max. Gear, weapon choices, Champion Points, and player skill are all more important than picking the best race for your playstyle. A Khajiit Magicka Sorcerer can complete all of the game's content, if the player is dedicated enough to making it work.

but what it fails to tell you is you'll be useless at pvp, wont get into groups because you're an orc with full heavy using a 2H with all points in health.

With a little bit of adaptation, a 2H heavy armor Orc could actually work very well in PvP. 2H is awesome in PvP, and so is heavy armor. Orcs are great as well, since you can worry way less about your health, and the extra mobility can be a godsend. You can't put all your points into health and still be competitive, but you can actually tank better with lots of points into stamina than you can with lots of points into health, since you use stamina to block, roll dodge, and sprint (unless you're a Sun Shield Templar).

I'm not condoning the power gap between all of the races and between one playstyle and another, but there are ways to work around it. Learn the meta, understand it, and then use that knowledge and apply it to a playstyle that works best for you. Will it be 100% the way you want to play? Probably not, but for most playstyles, it's more than feasible to find a middle ground between what you want to play and what works best.