How is that the case, though? Ulfric himself seems to be entrusting all domestic matters to his subordinates, which while not the most auspicious of choices given the circumstances is certainly understandable given the state of war they were in. The treatment they face from some of Windhelm's residents is certainly abhorrent, but the criticism of Ulfric here is that he does nothing about it, and forces them to live in squalor. The dark elves came to Windhelm after the Red Mountain eruption as a massive wave of refugees. The evidence for Ulfric's personal racism, though, seems to come exclusively from the treatment of the Dark Elves and Argonians in Windhelm.
Everyone quite literally seems to hate or look down upon everyone else for some reason or another, and in that the Nords are no different. Focusing so much on this, though, seems to ignore the fact that basically every ethnic group in the Elder Scrolls seems to have a whole heck of a lot of racists among them. And it is certainly true that there are a lot of people in the Stormcloaks that hold pretty clear disdain towards the other races of Tamriel. A lot of people will also hate on the Stormcloaks because of their apparent racist policies.
