One way to describe the "point" to all the conflicting stories and such in Morrowind is in terms of the "fantasy fulfillment" aspect of art. Some games simulate the fantasy of the violent hero, the man who saves the world, or at least his girl, by beating up the right people. Other games simulate the conquering general fantasy, with the player commanding armies against bad guys either historical or fantastic. Some games simulate the fantasy of running a business, like the Rail Tycoon series and what not. Sim City allows a player to act out the fantasy of being the (unelected) mayor of a city. Some games facilitate the fantasy of being a gangster.

One of the fantasies a player of Elder Scrolls games can act out is the fantasy of being a scholar, a researcher. Yeah, not exactly a mass audience product there, but for those of us to whom this appeals, it's loads of fun. One thing scholars, historians, and such have to deal with is the fact that there is no "history book" that tells them everything they need to know. They WRITE the history books, and they do so by attempting to tease the truth out of a collection of mostly unrelated fragments, bits of propaganda, personal letters and journals, commercial records, oral traditions, physical evidence (archaeology), and, of course, the work of other historians. Often different pieces of evidence seem to suggest contradictory narratives, sometimes because the interpreter isn't interpreting them correctly, other times because different source writers were either mistaken, or deliberately lying.

Compare the question "Who killed Nerevar, and why?" to the question, "Who shot JFK, and why?" Of course, this anology will fall flat if you have a very strong opinion on that second question.