Stardel

"Liberate Morrowind" is a too generic expression. Every House have a personal idea of "liberating". Even Dagoth Ur wants to free Morrowind by killing all the n'whas (slaves included). What do you want to liberate?

House Indoril was (with House telvanni) one of the most conservative factions of Morrowind. They were supporters of the Tribunal Temple. Lots of their members commited suicide after the joining of Morrowind in the Empire, finally after the Tribunal temple fall they've been totally eradicated by the dissident priests. You can compare them to the IRL Swiss guards. About House Dagoth, you said well: they were wizards soldiers. Their leader, Voryn Dagoth (Dagoth Ur you know) was a big friend with Nerevar Indoril. This means that both Indoril and Dagoth shared some toughts but when Dagoth Ur became crazy the House started following a dark path wich resulted in the Sixth House.