I've been consistently noting the fact that Dunmer...absolutely and without a doubt, pure blooded and home country Dunmer have been engaging in voice auto-dialogue that is out of place, for example a Redoran Guard says to a House Redoran, "Such a pleasure to see you today Outlander, what can I do for you." Etcetera.
It would be better if they didn't engage in voice dialogue, it becomes distracting that they would call each other 'outlanders' when clearly they are not. I assume this is just some default dialogue that was pulled to be used in place of a lack of greetings for npcs to other npcs, but I dislike it.
This is part of the Voiced
This is part of the Voiced Conversation mod which adds all Morrowind dialogue to the game. The way Oblivion works, NPCs always talk to each other unless their AI package states otherwise. They will use the same dialogue they use to talk to you. However there is a way for them to only say the outlander lines to the player. An update is in the works anyway, I will probably add this in as well. I only built in this check in a few lines so far.