Dear TWM, permit me to offer a few alternative views.
Still [the Hum] of Julianos evades us while pilgrims from across Tamriel flock to see the statues of Akatosh and the Savior of Bruma. While the Chapel's heirarchy, as my Lord already well knows, had originally sought to keep the knowledge of Martin's transformation in the face of Mehrunes Dagon from being widely dissiminated, the Imperial Legionaires who witnessed the event have proven difficult to silence. Much better would it have been for the good citizens to have believed that Akatosh Himself had deigned to end Dagon's rampage and not rely upon the actions of a mortal's (or mortals'?) faith.
I have emboldened one line here as I am uneasy. It does sound like the sort of shenanigans that a hierarchy would get up to - but I also feel that it could go the other way with Martin safely out of the way the hierarchy might get more mileage out of an Imperial Heir/Saviour line - unless this is tailored to be the doings of an advisor svcking up to a Nord Councillor and buffing Nord prejudices?
The Chapel Primates have increased their efforts to collect donations to fund the continuing research. Unfortunately, most of the tithes from the "civilized" provinces are, and have long been, committed to preexisting needs. On the other hand, the tithes from Morrowind have been exponentially increasing as word of the Tribunal Temple's collapse spreads through the daedra-razed ashlands of the Dunmer. The reactionary regression to ancestor and daedra worship has seen a merciful reversal (Praise Julianos and all of the Divines!) in the face of the naked aggression of their House of Troubles coupled with the impotence of the "Good Daedra" to provide assistance or succor, much less aid in stemming the tide of Dagon's raw carnage. Their conversion to the True Faith has increased the strength of our communication with the Divines, providing stronger Blessings, Healing, and Peace-Through-[the Hum].
I am not happy with this at all. Given that the Imperial Throne is emptied why would ordinary dunmer look to Imperials for succour? Did the Legions come to the rescue at Ald'Ruhn or the Ghostgate? I think not. There has been no significant detail that I have noted of activity on the part of the Legions - other than getting their asses kicked all over Cyrodiil
In Morrowind, the daedric hordes of Dagon swarmed and overran Ald'Ruhn, even though the S'kar, the Emperor Crab, in the middle of the city arose and fought alongside the noble Redoran. After finishing off the Redoran, the horde proceeded towards the Ghost Gate.
Regarding your statement here - I fear it is a little fanciful. So far I have read rumours (and seen MK's wonderful artwork) of Daedra destroying Ald'Ruhn - but no news of the fate of either the people or the armed forces there. Also there is no news known to me of the fate of the Ghostgate where the cream of the Redoran fighters on Vvardenfell were stationed other than it was besieged - no in-game news of a Daedric Success there, just a siege.
Allow me to present an equally speculative alternative:
The Fall of Ald'Ruhn
An account penned by Arsellus Pompus, scribe of the Ald'Ruhn Fighter's Guild
It is one thing to defeat a rabble - but something entirely different may occur when a close-knit familial organisation which holds to a martial tradition as the Redoran do is assaulted. When the Gate at Ald'Ruhn opened Redoran forces sought to deploy to defend the city of Ald'Ruhn and delay Daedic advances. Fighting was fierce and the destruction massive. The desperate raising of the Emperor Crab actually contributed to the destruction of the city but what is a revivified crab and a few buildings compared to the lives of Redoran womer and children?
The Citizens' Militia were the troops that spear-headed the offensive. Knowing that the better-drilled garrison would be needed to maintain the more difficult rearguard. It was clear from the first few moments of the eruption of Daedra into the midst of the unsuspecting city that this was one Redoran Battle that would not end in a resounding defeat of the enemy. So many city guards went down in those first moments simply because the weapons they carried could not harm the invading Daedra, but that had not lasted long.
In a sudden, unlooked-for and desperately fierce counter-offensive an astonishingly numerous, capable and courageous Citizens Militia, armed by a chain of willing hands organised by the noble families with all the superior weapons capable of harming Daedra that could be requisitioned from armories, shops and homes rocked the ignorant Daedra back on their heels The Damned Gate was so clogged up with Daedric dead that the tide of Daedric advance was rocked back on its heels so that reinforcements from Oblivion were stemmed for vital moments at least. Many brave hearts and fine dreams died in those moments - but the sacrifice was joyfully and willingly made that Redoran might survive - and the chant began "Remember Redoran!"
It was the astonishingly high number of Redoran present in the Capital and perhaps the Tales of the Nerevarine and his experiences fighting Daedra all over Vvardenfell that saw so many effective weapons in the hands of those who needed them but to the dismay of the Daedra they were there and ready at a moment's notice.
While this vital action proceeded those precious few too young or old to take part and those whose given duty it was to care for them in time of war silently and unobtrusively flowed from the buildings and streets and began to make their way to the pre-arranged assembly-points outside the City Walls, and from there to safety. No child squalled, no ancient complained - these were Redoran. And still the chant remained: "Remember Redoran! Remember our love."
It was inevitable that fully organised and prepared Daedra would prevail and as soon as the Commander of the Militia saw that the tide was turning she sent in the Guards to cover their retreat. A store of potent missiles that already been prepared for this appeared as if by magica and as the Daedra poured once more from their Gate they were met by a storm of a different nature and the front ranks and magic users of their oncoming numbers thinned briefly. That was all the respite the now battle-hardenend Militia needed to withdraw to the hasty barricades made from sturdy wagons, paving and buildings rent by magica - mostly Daedric it has to said.
However Redoran was not without its own resources and more. The valient members of the Ald'Ruhn Fighters Guild was offered a serious sum to build those barricades and man them - they went to work with a will. Redoran Mages assisted by a small contingent conscripted from the Mages Guild for the purpose cast all the spells that they could in the brief time available to give those all too limited barricades the same kind of resistance that is imbued in the seemingly sparse walls about Redoran cities. Word had come from the council that the Temple was preparing a little surprise for the visitors, but they needed more time.
The stream of Daedra pouring through the Gate swiftly turned into a Horde - as if Dagon ever mindful of past slights and the vital role that Redorans had played in opposing him and supporting the Temple had bent all his malice and resources to the destruction of the city. The defenders knew they would not be able to hold, but hold they did for seconds, for a minute. For what seemed like hours as the red, green and black waves of Daedra crashed into the barricades and fell before them.
Behind them the chanting of the Priests grew and grew until it resounded around the Plaza and drowned the shrieks and cries of the wounded and dying. and a whisper started and all the Daedra stopped dead. There was an eerie creaking and the ground shook beneath us. A hail of masonry could be seen arching over their heads to fall on the Daedra and a new chant began: "The Crab, the crab, the crab ... Remember Redoran!"
There ya goes - One battle is not a war. Want more?
ps - moderators please feel free to move this post if you so desire with blessings