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Other than that there isn't really a downside to which race you choose, so if you have friends who you want to play alliance wars with, I'd go the same alliance as them. but other than that you can be say a breton and do dungeons with your argonian friends even though your from different alliances.
Hope this helps
The Imperial upgrade allows you to play as an imperial, they are not included in gold edition
Imperial Edition upgrade is not included. However, you got Imperial City DLC, which is access to IC dungeons. Only things you miss are Imperial race, white horse and superpower to transform your items to Imperial style.