From what popular belief is, people think they are extinct. However, where is the proof? Black-Marsh is a tricky place, and so is many other lands. There are plenty of places that these creatures could thrive in unnoticed.
Also, Being Vulpine in nature, they I would assume, would be highly-intelligent or the most intelligent beast-like race in Tamriel. Which, if true, wouldn't they easily be able to hide themselves from any other race if they felt it necessary?
So, if one was to make a architecture, mod, and race about them, would it be so lore breaking, due to the uninsured understanding of whether they are extinct or not?