Indeed, though I doubt the Altmer will accept, they're too stubborn even if it could mean their complete defeat. Thus, I started the terms somewhat unreasonably high, knowing that if the Elves bite and try to negotiate it, anything lighter will be considered better, even if its still unfair. 

 And hey, at least this unfair treaty isn't forcing them to stop worshipping a god, now is it trying to force them into political change

Though I can imagine it will be hard to trumpet Elven Supremacy when you just surrendered and had your forces limited by men xD