As a long time but sporadic ES fan, I've always been interested by the 'deep lore', only to inevitably be disappointed at the apparently illogical, self-contradicting nature of it all.
The community scrambles to anolyze tidbits by MK, who himself admits that much of it (the Sermons of Vivec, at least) was written while he was drunk and high.
When we're told "daedric and aedric spirits are ideas, feelings, and objects all at once" it is all too easy to roll our eyes in disgust as if the developers had claimed the ES universe was powered by round triangles.
But I'm not ready to disregard the entire universe as "just not rational", so I'm willing to look at it from another perspective.
It goes like this:
"Two spheres--one white, one black--existed in colorless, infinite, three dimensional space. They overlapped, creating what we would call a grey area, and then the white sphere overwhelmed the black. The white sphere dreamed about everything else."
This is not exactly controversial, but I don't think we fully accept the implications. There is no Mundus. There is no oblivion. There are no daedric princes. Thus there is no reason to apply any type of rational consistency to the dream.
ONLY the meta-lore has this requirement. Any attempt to rationally reduce the dream with syllogisms or equations must neccisarily fail.
The creatures and worlds (or is there a difference!) we see are just like the id, ego, and superego of a human represented in a dreamscape.
And that's what's so unique about it.