I interpret the description 'increase spell power with fire effects' as meaning it increases damage done by fire damage spells. I've only seen this interpretation on the wiki though... everywhere else uses the description straight out of the game and leaves it at that.
Based on my interpretation, only the Templar spell 'Sun Fire' would get the boost from Flame Talent, because it's the only spell I can find that deals fire damage.
If you're going to pick a race for a class based on the racial traits/skills, Dunmer is probably good for Sorcerer or DragonKnight based on the Flame Talent skill. Mainly I guess because people are interpreting it as affecting skills/spells that deal fire damage and those two classes have a lot of those. The default appears to be Sorcerer for Dunmer though on most sites that talk about best racial/class match.
Wouldn't Dynamic (Increases Magicka and Stamina up to 3%) be more of an edge from a Templar point of view? More melee and spell attacks then? Assuming that 3% makes that much of a difference...