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The Emperor doesn't really discriminate against non Britannians.
If you are a number but prove yourself to be elite and useful like Suzaku then the Emperor will still acknowledge your skill and treat you accordingly (hence Suzaku's now an offiical knight, part of the Emperor's elite and higher ranked than most Britannians are). Emperor still thinks Britannian's as a majority are superior but isn't so mindlessly racist as to not realize a skilled warrior even he's foreign. Compare this to the purists who apparantly refused to believe that the Japanese made their own mecha and were beating them. What did they think they were dreaming?
On the other hand the Emperor looks down upon people that aren't skilled. Euphie was a full blooded Britannian and his own blood but he didn't have a very high opinion of her. In fact all of Euphie's siblings that are close to her Schinzel/Cornelia/Lelouch don't think very highly of her. They like her and her personality but she has no part in their plans and they don't want her involved at all. Only Cornelia seemed to even try to get her experience.
And for people that are crippled and can't be useful at all, the Emperor thinks don't even deserve to live. Nunally is also a full blooded Britannian and his own blood but after she was crippled he more or less wrote her off as dead even though she was still alive as she could no longer compete in the world and thats all he thinks matters.
So the Emperor is like Dalton after all if even more extreme. If you are strong he acknowledges you, even if you are foreign. If you are weak he looks down on you even if you are Britannian.
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