So, a castle with elementals (I know they're from the third game) is realistic, but cats aren't? I wouldn't mind fighting them, though... it's a shame.
And why shouldn't mystical Asghan be home not only to elves, dwarves, humans, demons, and orcs, but also to other races - Khajiit, Argonians, Troglodytes (Nihon), and even mermaids...? You can come up with a lot - but if the standards of Oblivion include these species, why shouldn't Heroes include them too...?
Kitsune - take the flag, put your imagination to work, and go write and create!;)
P.S. let's just leave the 9 lives as a myth!:D