A pond full of slaughterfish
Dunmer politics is like a game of pick-up-sticks: The first one to make a move loses. But moving only counts when someone sees it, and moving against someone who isn't a player on the board doesn't count at all... unless that person was someone else's pawn...
Don't ever think that everything is what it seems like. Any pond looks quiet, but there are slaughterfish under the surface.
Some views on the other Houses
Hlaalu
Vivicah
The Hlaalu are my favourite house - you can just buy them if you need them for anything. Yes, they are rather friendly to Outlanders, but they are friendly to everyone with coin.
Nelvan
House Hlaalu make a good definition for the word "fetcher." Have you heard the tale of the Hlaalu who sold his grandmother for a handful of gold? No? Well, I have no time for stories. Now begone, I have far more important things to do.
Dres
Vivicah
Nobody really likes the Dres. But then again, nobody really likes guar dung. Yet still you need it to... fertilise your saltrice, or whatever you do with it. You get my point.
Nelvan
House Dres are a valuable asset. They are the most reliable source of slaves. Their large plantations stinks of saltrice. I can't say I am particularly fond of it, but apparently they make a profit from it, so somebody must be.
Redoran
Vivicah
The Redorans are honorable, that means, they can be easily manipulated. Just point out that they failed by keeping the Nord out of Morrowind, and they'll feel obliged to make up for it in any way possible. But be careful not to hurt their precious pride - some of them are really too daft to consider the consequences of their actions. Wouldn't want things to get messy now, would we.
Nelvan
The Redoran are nords who failed to be born as nords. You should be able to spot a Redoran quite easily, not only because of their incredible obsession with honour and duty, but many of their warriors wear the traditionally Redoran Gah-Julan bonemold armour. While they are utterly insufferable, they can prove useful on occation.
Indoril
Vivicah
House Indoril... most of them are zealots, and a nuisance. But they seem to actually believe what they are preaching about their tribunal, so you can beat them with their own weapons. It's always fun when you can make them jump by quoting the right Sermon."
Nelvan
House Indoril have always despised us, House Telvanni. They wish to impose restrictions on our magical ambitions based on religious superstitions. Obviously, we never accepted any such nonsense, much to their annoyance.
Telvanni
Vivicah
Yes, that would be us. Most glorious House of all, et cetera et cetera..." *looks around* "... I'm glad that I was born Telvanni. At least there's not some sort of agenda that we have to follow."
Nelvan
You want to know about House Telvanni? *Nelvan looks most unimpressed* What kind of s'wit joins a Great House without knowing about it? Take your stupid questions elsewhere, and stop wasting my time, fetcher!
Dagoth
Vivicah
Dunmer don't talk about this, so you haven't heard it from me... but the Sixth House, yes..." *smiles as if she knew a secret* "They vanished at the battle of Red Mountain. The Tribunal said that Voryn Dagoth turned rogue, driven mad by the tools of Kagrenac, and that the death of Indoril Nerevar is to blame entirely on him. His House got shattered afterwards, some of their young ones adopted... Listen, why don't you go and ask Nelvan about this. Be polite when you do."
The ashlanders, however, tell tales of how the Tribunal betrayed Nerevar, killed both Nerevar, and Voryn. According to this tale, Voryn Dagoth remained loyal to Nerevar, and tried to prevent the Tribunal from using the profane dwemer tools. Hmm, if it's true? I'd guess that perhaps there is a grain of truth in both stories.."