There was a book in MW with the theory that Oblivion is the afterlife, and Daedra lords powerful ancestors.
"For my gods and emperor" i think it's called.
I think it is "The Old Ways":
We recognize the multiple threats that a strong tyrant represents -- breeds cruelty which feeds the Daedra Boethiah and hatred which feeds the Daedra Vaernima; if he should die having performed a particularly malevolent act, he may go to rule in Oblivion; and worst of all, he inspires other villains to thirst after power and other rulers to embrace villainy. Several possibillities. The only person we've supposedly had contact with from Sovngarde is http://www.imperial-library.info/mwbooks/bm_sovngarde.shtml, and that's the only "account" we've heard of. Who's to say it was a legitimate otherwordly contact or not, especially since that' the only one speaking of Sovngarde? We don't ever discover whether Ulfgar the Unending made it to Sovngarde or not.
Very likely he did, as he (and his friens there!) was able to cast thier powers to Bloodskaal.
1) Rolf the Long was contacted very early in his Sovngarde experience, meaning his soul wasn't yet broken down enough to exhibit noticeable problems.
Maybe.
2) Perhaps the dreamsleeve, while stripping identity from the soul, still temporarily preserves that sense of identity until the soul is sent back to Nirn. Rather how like dirt on clothes in a washing machine still remain in the washing machine until the clothes are removed. That would allow the soul to be purged, while the identity of the soul still perceives their hallucinogenic heaven-state in full identity, because their identity is still floating around for a while.
This make some sence for me.
But I have another theory, potentially able to reconcile both camps mentoned by Lycanthropic_Nerev. Please, check it, and say, is it possible, or do I missing somithing.
In my opinion, Dreamsleeve is rather a method to move across the planes than recycling machine. Yes, planes of afterlife really exist, but all is not so simple.
We don't know exactly what souls are, but we know "that souls are a source of mystic energy". So I suppose that soul, roughly speaking, is a somewhat of structured energy, and "structure" here is personality.
So, Dreamsleeve is somewhat of wormhole in Aurbis, but across it only "structure" of soul can move. When mortal dies, this "structure" is moving to plan of afterlife, accordind to Diety mortal was associated with; there this "structure" obtains portion of energy and becomes complete soul again, by now - as a part of this plan. And original energy of soul is recycled in dreamsleeve indeed, and returns to Nirn to become new soul with new "structure".
3) Perhaps the Sovngarde story is literally true, and that Nords can bind their souls to Shor like other mortals can bind their souls to Daedra, thus escaping the Dreamsleeve totally.
...
See 2) above for one possibility, but also realize there's the potential that most Dunmer who practice ancestor-worship are probably binding their souls to Azura, thus escaping the Dreamsleeve totally.
Oh, yes. And Redgards saved from Dreamsleeve by Tu'whacca, Imperial - by Arkay, and as a result only mortal who goes there are atheistic dwemers and ???????? like Mankar...
The madness does not justify the dreamsleeve. Rahter, the dreamsleeve justifies the madness.
And again, what are the sources of Dreamsleeve theory?
The dreamsleeve is more or less a natural process for mortals, who get the anesthetic of their choice, so to speak. The Daedra are more aware of their journey through the dreamsleeve, and they fear it direly. It is not a natural process for them.
Hmm. About this:
Daedra do not really die. Not as you know death. But we can sacrifice ourselves to Oblivion. As she did. Oblivion is existence and self-awareness without the ability to see, hear, or affect the world. For an immortal it is hell -- Unspeakable pain and horror -- Absolute loss. Eventually we do return. But not all return as they were. There is sickness. Madness. Change.http://www.imperial-library.info/tsobs/part04.shtml
Is it Dreemsleve, or another similar process?