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Telvanni are the most individually racist and have the most slaves, but are institutionally the most accepting of outlanders, non-Dunmer, and even beastfolk as long as they are powerful enough to stand against their detractors. Might makes right for House Telvanni, and if you're able to defend your character and your positions, then the House will allow your stay. For what it's worth, Telvanni is the only Great House that employs either Khajiit or Argonians. You will also have the opportunity to work with some forward-thinking councilors in the House who want to become more progressive for the House's sake.
Hlaalu are the least individually racist and have a medium amount of slaves, but are institutionally the most corrupt and prone to racism against outlanders, non-Dunmer, and beastfolk. There are two competing perspectives in the House, the anti-outlander racism espoused by Orvas Dren and the Cammona Tong, and the pro-equality, anti-slavery stance espoused by Ilmeni Dren and the Twin Lamps. The former has a much stronger control over House Hlaalu than the latter, but one might hope that a charismatic and powerful enough individual could begin to tip the scales and push the House into a more progressive future.
