1st, Talos is a Daedra. He didn't participate in the creation of the mundus. The paternity test came back, and he is not your ancestor
He doesn't live in Oblivion either. He's an ascended mortal.
In fact, I say to everyone, unless a mer is speaking out of his/her butt, just use aedra, and daedra in the following ways
Aedra: participated in the creation of Mundus and gave a piece/whole of itself to it
Daedra: Did not participate in the creation of Mundus and lives in Oblivion
Magna-Ge: Did/did not participate in the creation of Mundus, and now lives in the the Aetherius
Other: Those who don't fit, which tends to be culture gods and ascended mortals
Talos would be under "other" and Shor/Shezarr/Lorkhan would technically be aedroth.