» Tue Nov 23, 2010 8:26 pm
The curse was broken through paradox. The curse stated that the true identity of the thief would be stricken from history. No being would know him aside from wearing the cowl and being known as the Gray Fox. Corvus accessed the one immutable record of history that could not be changed by any silly Daedra curse: the Elder Scrolls. Corvus then read from the scroll about who really stole the Cowl, a feat that by the standards of the curse, could not happen. Corvus broke the bounds of the curse and (in programming parlance) caused the curse to crash. An exception in the curse was created, making the wielder of the Cowl able to take off the cowl and still be known. Under the previous bounds of the curse, if someone took off the cowl, people wouldn't know who he was. They'd think that he was 'A Stranger'. They wouldn't know who he was at all. But now, you take it off and people know who you are.
Now, as for why the new exception to the curse reached beyond just Corvus is a little less concrete, however, I'll give you my interpretation. Due to the nature of Nocturnal's curse and how quickly it was formed and created, Nocturnal probably was angry and incensed at how a mortal had managed to audaciously stolen something of hers and so hastily cast the curse without a whole lot of clauses and such. Because it was broad and sweeping, it applied to everyone, so when one exception was created and two people knew Dareloth's identity, the curse had to adjust and then it applied to everyone, everywhen. The Gray Fox was then given the leverage to take off his mask and not be identified and hunted by the guards, but still be recognized by those of whom he was trying to deal with. This gave him the leverage to build himself a Thieves Guild.
Finally, and a little tangential, this whole paradox/curse lifting thing retroactively creating the Thieves Guild gives room for the theory that the events of Oblivion took place in a subtle variation of how history really itself played out in Daggerfall (but not maybe not Morrowind). Because in Daggerfall there was a Thieves' Guild that existed and quite well established despite our one book on the subject (from Oblivion) that said such a thing never existed. It does talk about Gentleman Jim Stacey, so we don't know about Morrowind. However, given that it doesn't explain anything and that it doesn't then give room for any interesting interpretations aside from a neat little dead-end thought experiment, the theory is bunk through Occam's Razor (as if that ever applies to the ES universe).