Now, as we all know Daedra are extremists of different aspect. Mehrunes loves his destruction, Namira loves ugly things and darkness, Azura loves... love, etc. They all require things of mortals, but they all represent things. Now, when somebody turns mad, is that Sheogorath reaching down and effecting them, or is he giggling in glee as it happens?
In the Monomyth, it mentions:
When you visit Sheogorath's shrine he says:
I could turn you into a goat. Or a puddle. Or a bad idea. I could make you eat your own fingers. Or fall in love with a cloud. Perhaps I could make you into something useful. Let's find out."
Implying that he is capable of altering your mind. But then it's mentioned that the Daedra are all banished to Oblivion, and they require mortals to do these tasks for them instead of going out and doing it themselves.
So basically what I'm asking is: Do Daedra affect everyday life, making people go crazy, making them have nightmares, making people tell lies and spin webs of deceit, making people take chances they normally wouldn't risk, making people be hedonistic, etc.? Or are they just the spirits that embody & represent the extremes of all of these things?