Lore wise, I don't think there's any reason to assume that just because someone is a legendary warrior-hero, they can necessarily parlay that into any kind of metaphysical transcendence.
There is actually all the reason. When multiple gods walk Mundus time goes haywire because each of them commands the events that happen, creating two time-lines for a lack of a better word. The effect goes away when the god gives control back to the natural flow of time or when the god dies or disapears.
For Daggerfall this means that the seven Nummidia (aka Brass God) could send armies around to what afterwards seem like impossible places at impossible times. The troops were moving normally but each Numidium created a different sequence of events. Afterwards when they destroyed each other time got mended and all the contradicting events were overlapped, explaining the whole warp in the west.
What can't be explained from this is why there were seven of them.
The only explanation for this is that all the players were also gods, but each one made a different decision. Normally these get mended together at the end of the game but as the Numidium is also a god and thus able to control time it put off the mending and continued the time line of the player that started it.
The most direct confirmation that the player is divine comes from the Sermons but I'll safe that for somebody else. I wrote an article explaining the http://www.imperial-library.info/fsg/prowelerarticle2.shtml and the http://www.imperial-library.info/obscure_text/nu-hatta_nu-mantia.shtmlconfirms this divine control of time too.