Talos knows Royalty, but the one myth that gave birth to him is now as significant as any other tacked onto it. I know I'm moth-talking here, but the point is that Talos was sorta already three or four people that blurred into each other and still do, and yet we can identify one persona or Will as Talos, and say that it has attained the Tower (actual evidence of this somewhat difficult).
Like, Ysgramor and Pelinal and so on were both several people, but we still know their names. Talos might not have any conscious say in the matters of mortals which emulate him, but then again those mortals might not either. I'm rambling here; I think what I mean to say is that as far as Memory and truth are concerned, Talos always moved just like the you-that-becomes-him moved. If you don't do anything significant, then you get forgotten. If you do something new under the mantle of Talos, then Talos continues to act through CHIM, and your actions are automatically seen as in accordance with his.
It's a compromise between seeing Talos as you, and seeing Talos act through you. Or so I'd imagine. Things get a little confusing when the Hero is involved, because that character (you) is the only thing that really seems to make lucid decisions in Tamriel.