at the end of the SI main quest you can talk to Dyus and he says something about how your the only one that can release him from his immortality so my question is can you release Dyus from his imprisonment or does he have a larger part to play in future elder scrolls games?
Don't know. Could be. Maybe not.
We see Sheogorath aged, because that is how we percieve him as the era of madness closes into sterile order. He (the realm) is represented in sterile, simetrical order too. The world is split into two aspects, instead of him being the extreme of one or the other. These phases are close to the effects of time, and that is what we see.
In other words, the Greymarch created a begining and end to mark time from, without it there won't be an "aging" Sheogorath.