I don't understand the impulse to blindly accept the lore as 100% historically accurate, even in terms of the game world. Yes, there is "magic" on Nirn, but I assume that it has certain properties, such as gravity and magnetism, both forces that exist in our world.
There's a lot of mythology about how OUR universe was created, which some people do or have accepted as fact, and there's also scientific theories (proven or unproven) that people have accepted as fact.
So I'm just saying...while you prolly have some Dark Elves who blindly believe the Mundus was created ex nihlio by the Gods, I'm sure there are some philosophical Imperials or Bretons who speculate more natural causes.
Usually it's easier to understand the lore if you can understand the perspective it was made from. In this case the nature of the world itself is myth. This could be argued through the uncanny resemblances in the Monomyth, the very excistence of Tonal Architecture, manteling and other myth making tools.
Now to the point:
1. The http://www.imperial-library.info/mwbooks/monomyth.shtmlis a collection of myths that are all roughly the same, yet they come from people that have never been in contact at such before at such an early period in time. This gives the appearance that rather then being coincidently thought up all the same, they are based on the same historical event. Events that can be corroborated by the excistence of the Adamantine Tower and the Heart of Lorkhan.
2. The http://dwemerstudies.wiwiland.net/planets.html shows the planets in their orbits. Now the Dwemer were Tamriels most advanced race and they even developed telescopes to look at the sky. The planets in the Orrery however don't follow any trajectory that is physically plausible. So physics are not involved or rather, physics as we know them are enforced on Mundus by the earthbones but don't extend beyond.
3. Magic shouldn't be seen as opposed to 'science'. It's occasionally cast as such to create a conflict but it doesn't have to be. When magic is part of the natural world it is something that can be researched and experimented with as if it were any other force of nature.
People in Tamriel are doing this, it might come in the form of listing to Ancestor Moths, creating battle-spire as a space station in Oblivion, or sending Mananauts into Oblivion. It's all a bit odd and hazy but that's okay.
If you're looking for 'philosophical' people Hasphat occasionally provides such explanation. Though he's also considered a bit of a hack by the other academics. Though frankly said, his refutations are the more interesting refutations as they're not simply rejections based on the assumption that because it's a myth, it can't be true.
4. Try to suspend your disbelieve.