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Originally Posted by Krauter
On the subject of recognizing race, I believe it does, since either in the quest to become Thane of Whiterun the Jarl said he was surprised a Dunmer was the Dovakhiin (or maybe it was his wizard  ) |
It's not that they don't recognize you as Nord or Dunmer or whatever, it's just that it doesn't matter with regard to how you are treated by them in a way that makes choosing one race over another an advantage in general interactions. They may comment on your race but it doesn't affect gameplay except in terms of random, inconsequential dialogue. At least that's what I read somewhere.
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Anyways, I don't mind most people in Windhelm, just some people (drunken idiot that yells in the gray quarters) I don't like. I also don't like how it. snows. all. (ALL) the. time. in Windhelm. Personally, the city I enjoy the most is Whiterun, seconded by Riften and Markarth. Since Whiterun is predominantly pro-Imperial, yet still neutral I enjoy it. That and theres no freaking snow 
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Oh, in terms of how people treat you overall, Whiterun is the best I've found. I don't really care for Riften and Markarth, mostly because they seem to be controlled by powerful and corrupt individuals and/or factions that must be appeased in order to make substantial progress in either location.
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In Solitude I can't really say if I find them "snooty" since I haven't spent a whole lot of time there, maybe a whole 20 minutes to assassinate a bride and the head of an Imperial security organ. Snooty people don't help their case when they're being assassinated  (yet the bride was pretty nice...)
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Next time you're in town, pay a visit to Radiant Raiment - it's an apparel shop on the right just after you enter the city gates and pass the execution platform. Talk to the proprietor, Endarie. Yeah she's an Altmer but she could dial it down a notch when what I'm wearing and carrying is worth more than her entire shop, contents included.
I have to say in my previous character I ended up with a lot of high value stuff (for non-armor apparel, anyway) in my inventory that I was looking to sell and I made a special point of going to Solitude, using/activating everything I had that gave me an advantage in bartering and haggling, and taking every last septim she had while still having plenty left over that
she couldn't afford to buy. 