... what if House Dwemer merged with House Dagoth?

I don't really have much evidence to go along with this question. And I hate to bring up an old discussion, but I've been noticing more of the Dagoth=Dwemer confusion from Morrowind recently (who's the real 6th house?). And began wondering if they actually merged in a sense when the Dwemer "disappeared."

For one: the beards.

For two: the equality confusion, see this quote from the player's journal: "Here's Gilvas Barelo's short interpretation of 'The Lost Prophecy'. 'An outlander -- foreign-born, but welcomed as a guest -- confronts seven curses beneath Red Mountain. His hand, blessed by Azura, uses a cursed blade to bring justice to House Dagoth, or House Dwemer, or both.' Maybe the prophecy was lost because Ashlanders didn't like the idea of an outlander Nerevarine."

That's just one example of many.

When I say merged. I mean merged. I don't mean that the Dwemer psyche and mentality would replace those of House Dagoth, just that they may sit in the back of their mind. Influence them in subtle ways. Maybe Kagrenac's soul merged with Voryn's due to proximity and it propogated to the entire House when he used the heart ages later. Voryn expresses his extreme interest in all things Dwemer, profane, technological, tonal, etc to the player during his QnA session.

I'm just curious if this theory was ever considered. And how it was debunked.