I'm not sure whether I've been selectively deaf or not, but I've never heard any racist talk coming from Ulfric's mouth? Sure he's surrounded by racist, old-value boys, yet I've still to hear him say anything that could be considered at least mildly racist. Chose Stormcloaks on my first character because I loved the thought of being a rebel, fighting an old and dying empire. Made a second character who was supposed to join the Legion, but ended up signing for the Stormcloaks again.