I have a proposal for a system that could be implemented to benefit all parties and allow for more freedom for future changes to racials.

One of the main concerns about racials is whether they will keep changing in the future.
Races as we have them are not easily changeable unlike gear sets, attribute points and skill points. Choosing a race fit for a certain role and then have it become a whole different thing is concerning when the only way to correct it is via that cash shop.

My suggestion is to have a system similar account style change or outfitting but for racials passives.

How will it work?
The racial passive for a race may be unlocked via some feat. Leveling said race to lv50, obtaining Codwell's Gold, etc.
A player may change their current character's racial passives for any other set of racial passives that have been unlocked in the account.
Example:

Player levels up a breton to lv 50 .
Unlock the ability for other characters to opt into using the bretons' passives.
Later they create a dunmer.
The dunmer may now reject or touggle off all dunmer passives and use all passives of the breton race while still being a dunmer.

Things to note.
-This swap will NOT change the characters physical appearance. You may still need to purchase a race change token to completely change your race and appearance.
-You may NOT mix racials, You either have all the passives for race A or all the passives for race B. No in betweens in other to keep balance between races rather than the tailored selection of their specific passives.

The Process
The ability to change passives should be more difficult than changing CP. And should stay in line with other types of respecs like skillpoint. It should not be something that can be changed on the go or inexpensive enough for people to be swapping then every time.
Suggestion:
A Shrine or table which will require gold and/or a premium currency (Passive Change Tokens?) working like the outfit station.


How can ZoS profit out of such system?
People who want to take shortcuts through this system instead of leveling a whole character to lv50 may purchase the racial passives in the store individually or in discounted packs.
Example:
1500 crowns individual races
3500 for a whole alliance
9000 for all 9 base races
To keep ARAA and Imperials relevant, characters may only switch passives within their alliance unless they own ARAA and imperials passives may be unlocked on purchase.
Similarly a 10k crown bundle can exist which offers ARAA and the 9 base races. (Going off the pricing example above)

Additionally possible new currency similar to outfit tokens.

Other Benefits
ZoS may now make drastic changes to races without having to give race changes for free as the player base can change passives using gold or passive change tokens

Min/Maxers may fine tune their builds as they see fit.

Casual/New players are given an incentive to level up more characters or do the necessary feats to unlock race passives, buy more characters slots, or buy the races.

Players can experiment with other races, allowing them to find racial passives that better fit them.

Role players can stay in character without giving up functionality. similar fashion driven players don't have to give up function over form. Some people have grown to love their characters and may not want to change the way they look.

Full Race Change?
People will still try get a full race change because now they can play whatever they want as racial appearances and body types are different accross all races.

This game has evolved to the point where looks don't actually match the function (style change)
Given the vestige is a soulless shell, it doesn't seem too far fetched for them to be linked with the other characters they share their CP with on a different level.

I realize this may not even be possible any time zoon or may never happen. However I think in the long term it will allow everyone to be more diverse and encourage creative building, both in builds and outfits.

*Edit corrected few typos