we're all familiar with dragon breaks.but in ESO are we experiencing a dragon stretch? See Exegesis of Merid-nunda.
Does Meridia have more control over the dragon than we thought? Something something Theory of Relativity, something something Light in measurement relation to time...Meridia's kinda big on the whole light thing.

Am I way off, or is there something to this?

See http://en.wikipedia.org/wiki/Redshift.

Yes, but what happens if/when speed of light (C.) breaks it's very definition and is no longer constant?

"...thus does Merid-Nunda [ride? slide?] across the rainbow road from end to end, at one end stretching the dragon, at the other end compressing him...."

What are the implications of this?

Light does not go slower in red shift. Nor does it go faster in blue shift. Its FREQUENCY changes due to the Doppler effect.

I understand this, and in our universe this holds true. So redshift is a red herring.
I read the Exegesis though as Meridia having control over that light, it not being constant as in our universe.