Your first point isn't really about the Elder Scrolls itself, but on weather a piece of media depicting something is endorsing it, and that is beyond the scope of my post, but also, beyond the surface level of what is presented in Skyrim, the politics of TES are quite good by fantasy standards.

Your second point is just incredibly wrong on so many levels, the LBD cannot take on the Dominion by themselves, that's absurd, and again you criticize the fact that the "correct" political option isn't presented to you in a piece of media so its bad, which I think is just a bad way of looking at fiction in general.