I think all of the races look "better", in that they're all graphically superior compared to the older games. And hopefully less of that "I'm always staring into your soul" conversation you normall get in Bethesda games.
Personally, I think the necks on the female khajiit are either too thin or too long. I'm used to seeing lizards with long odd-angled necks, but not felines. The elven classes are a bit unnerving as well, more emphasis on different-shaped eyes. Not bad in any way, just giving them all some uniqueness.