The Mages' Guild should be an extremely powerful organization, both politically and physically.
The Guild was in deep [censored] because a few necromancer cells popped up. Also, because they were incredibly tied to the old empire, once it fell, they lost that political power.
Traven made Artorius look like a shining beacon of intellect.
Traven just smiled and said these people are evil, kill them. He was a bad leader if half of the council left upon being the head, especially since the practice of necromancy is sanctioned by plenty of governments, even the empire, going as far as donating fresh bodies of bandits and executed prisoners to necromancers as a way to fund their research.
Why was the Mages' Guild stagnant? A long chain of incompetent leaders.
A long chain of incompetent leaders, magical studies losing it, and the banning levitation.
The guild needs to be run by a much more aggressive leader. He should outlaw the use of magic without a membership with the guild. The Emperor can say, "Hey, that's not happening."
Actually, the empire sanctioned that they can stop organizations from teaching magics, they did it all the time in Morrowind.
The Arch Mage can respond, "We're hte heart of magic in Tamriel, back off or we can get rid of you."
Then they get tried for treason, lose their charter, and die off. There are not that many wizards.
A guild of wizards and sorcerers could easily overthrow Septim, Mede, whoever is in rule.
Something like that almost happened in Summerset...it ended very badly for that army with all the mages. Very badly. Also, there really and truely are not that many mages. For every 1 mage, there is around 100 normal people.
You don't mess with spellcasters. The Imperial Leigon has thousands of member, there are thousands of wizards, and they can each summon more minions from the meek scamps to powerful creatures like liches and xivilai.
Most wizards are not that powerful, and the ones that are tend to be in extreme higher up positions, which is not that many. Also, the Imperial Legion has its own division of spellcasters, the Imperial battlemages. These guys are hardcoe, with one green battlemage able to infiltrate deep in Oblivion to stop Mehrunes Dagon from invading (TES: Battlespire). These guys are legion through and through. However, do not doubt the power of a standing army. It was just an army of some kingdom in High Rock who stopped Cameran the Usurper, whose army was filled with undead and daedra. It was Tiber Septim's army who just by showing up to the front door caused the battlemages of the Nibenese to surrender immediately. Good tactics win wars, not mages.
Another problem I had was the outlaw of Necromancy? Why? Half of the council of the Mages' Guild resigned when Traven was made Arch Mage, a little sign for anyone else? The guild deserves to remain, if it can prove its worth.
And they didn't.