It looks very much like it, so I would not say it is a stretch. Those Dunmer probably got a hold of a few disabled robots, and gutted it of its engines and wore the shells.
read the book "ruins of kemel-ze"(sp?) it confirms it
Glad you mentioned it.
Most Dwarven armor is made of mismatched pieces from various devices, hence its reputation for being bulky and unwieldy. But a matched set from an intact mechanism is worth more than its weight in gold, for the pieces all fit together smoothly and the wearer hardly notices the bulk.
Along each wall stood rows of mechanical men, intact except for one oddity: their heads had been ritually removed and placed on the floor at their feet. - http://www.imperial-library.info/mwbooks/ruinsofkemelze.shtml
The matched set, moves without burdening the wearer. Sounds like power armor, http://www.gearcritech.com/images2/2007.07/update31_iron1.JPG? That makes what appeared to be the Kings burial chamber the armory of the local battalion and they http://www.imperial-library.info/mwbooks/marobar06.shtml.
There is no technical progress in TES.
What makes you say this?