i went with the blue stripes, partially because i made the choice without even talking to the racist elfs first; but never really got along with those characters, even if i'm not particularly fond of the blues commander (the girl commando is another story though...

)
some ppl said that the plot is more interesting with the Skoiatel throughout chapter 2 (some dense political intrigue), but the story would present more gaps at the end; with the blues you're back at a military camp, rotten and dirty much like in the prelude, interesting as it portraits much of what life in a war camp would be for the soldiers and their nobles (who camp apart of them); i'm enjoying thus far but i'm only starting the first 2 couple quests...