I just came across a reference to Talos as the name of a https://en.wikipedia.org/wiki/Talos, possibly created by the smith-god Hephaestus, who defended the island of Crete.

That particular source for the name is mentioned in http://www.gamesas.com/topic/1082080-oblivion-etymology/page__hl__crete+talos__fromsearch__1, and there are a few (clumsy) references to TES on the Wikipedia page.

The soul of the Underking, one third of Talos, was used to power the Bronze Giant Numidium. Makes sense.

This.

Actually this thread makes me think of something. Talos was interchangeable with Wulfharth, who was interchangeable with Zurin on the matter of powering Numidium. So, does that mean that Numidium is bound to Talos? Will Talos return by possessing it and essentially become a bronze Liberty Prime who hates the Thalmor instead of Communists? Because if so, I'd definitely pay for that game!

My initial thought was that, simply, this legend may have influenced someone at Bethesda.

But thinking about it a bit more, it suggests some other ideas. In particular, that Talos is the combination of Wulfharth, Zurin Arctus, and the Dwemer, under the will of Tiber Septim. That is, Talos is the Brass God.

How much wanna bet Todd/Ted/Ken/MK was a fan of classic http://t0.gstatic.com/images?q=tbn:ANd9GcTJSVLw07C6FSEJh6XNvj_J6QTWj1hO1aQ-bloEqTToiM4L2wBGjPlMKe5Y

I believe you meant https://www.youtube.com/watch?v=l2JqOhYhm7E.

Anyone else think that Bethesda secretly wants to design a giant robot fighting game?

They could call it: Elder http://en.wikipedia.org/wiki/Armored_Core