Perhaps not as much as you would think, but the actual definition of a mage is rather ambiguous, the nature of magic too. Palinal, who you mentioned, was called a sorceror, in addition to other things.
What I described isn't really meta-gaming, but, ironically, in tes games and in tes lore, especially in lore in fact, "meta-gaming" is kind of a big part of it. In a sense a lot of the supernatural background to the games themselves are the battles between various meta-gamers, so perhaps the term is rather appropriate here.
If I was to try and explain it another way, I would suggest looking at the magical route as a tool kit of sorts which easily provides more options in game and in universe than most other if not all other approaches. The potentially immense power of magic compared to a strong sword arm or a well placed arrow, which are still viable in their own right, seems totally in-game and in-lore justifiable, it should simply be harder to master than most other things.
The impression I get from the games is that mages and magic users tend to be rarer, not because there are better options, but because the magical path requires a lot of time, patience. research and trial and error. Not to mention intelligence. It's a long, winding and tricky path that very few seem to be able to walk but few can avoid if they want to become powerful.
It's for this reason that I, along with the other guy, would like to see magic be much more than just some alternative to an axe or sword, the power should be potentially immense but very hard to acquire.
I see it like different shades of magic. There is ancient magic, the regular magic we know and the higher magic of the divine.
The thu'um at least conventionally, is just another form of magic, though a pretty powerful one, seemingly leaning towards that "higher magic" type than others. Basically, the more into it you the player or the in-game characters get, the more magical their means seem to become, or at least the more they start to know about magic.
A logical problem that should be solved for the sake of the game should be one addressed the reason for the persistence of more conventional, primitive means of getting things done. Magic is obviously the better tool kit, so why is it that governments with conventional armies seem to dominate the political sphere?
I'd suggest that it's not because magic is not much better than a sharp sword or a well designed contract or law, but because magic is by its nature harder to really figure out for mortals and those who get really good at it are either overwhelmed by numbers, taken down by competition or simply find themselves doing other things because they have learned to escape the rat race that demands the attentions of so many others.