Wheres with the Warp, we have multiple axes.
Remember, the miracle peace of was only temporary, the Empire crumbles and Orsinium gets sacked. Mannimarco is still out there, trolling Arkay, and the Underking...well, he's out there, somewhere. And of course, the resounding implications of the gods being half-dead and plastic.
Much more interesting than if TES was a rigid and mandated that say, only Daggerfall got hold of Walking Brass. Bam. Empire of Daggefall. No contest, no conflict, no drama.
Also, recall the Dev who wrote the putatively-canon texts that helped to resolve and explain that this glaring discrepancy.
His initials, are of course, M and K.
QED we of the Shadowy Lore-Forum Clique would run into massive invisible walls if we tried to explain anything without linking to MK. It's just a necessity.
with the warp being true we still only have one axis, I.E the warp happened and everything resolved peacefully.
The Underking is dead, its said he dies in one of the endings and they all happened, so he is dead.
Also Mannimarco gets killed in Oblivion so that problem is solved relatively lamely.