I agree with this. I don't see why wearing another race's face via an artifact mask or whatnot would automatically infuse them with the innate ability of that race. Has this actually been confirmed to be the case? I as under the assumption that they only stole the faces to change appearance, making it easier for them to blend in where they'd otherwise be shunned.
Edit: Wasn't it stated in the video to simply be a glamour and nothing more?
Unless I somehow missed it he doesn't talk about the racial abilities. He says that the visual change to the undead model is glamour and purely cosmetic. You'll look like one of the other races and you'll be presented with that race's respective dialogue options, but you'll still take damage from healing spells etc.
