I concur. I have different accounts for different characters.
My Dark Elf lives in Weynon Priory as an archer exploring the countryside.
My High Elf is a wandering mage.
My Argonian Assasin lives with the Dark Brotherhood.
As far as they're concerned, Kvatch is just fine and Jauffree has the AoK. What if they should go to Kvatcha and see it totally destroyed and the cause was Oblivion Gate? Turn right around and run. No way are they going to enter that gate.
EDIT: As for ol' Martin, he'll stay there forever until you come to pick him up. He's a good little priest.