User blog comment:Harold Burned-Mane/The Truth about Ulfric Stormcloak/@comment-1600847-20130915144103

The reason there aren't any non-Nord towns in-game and only 4 Khajiit in a caravan is because Tamriel is greatly shrunk to fit inside a video game. If it's really the size show in-game, there would be around 1000 people in all of Tamriel with a city holding no more than 50 people. But it's not that size, that's just all modern technology can let Bethesda make.

But yes, Brunwulf is an Imperial agent. Just like the Jarl replacements in Falkreath, Markarth, Whiterun and Morthal are all Stormcloak agents. So what? They're fighting for what they believe in.