See, the Telvanni may be individually powerful, but they're unwilling or unable to leverage that personal power into political or economic power. They just couldn't care less about the world around them, each other, or anything but their own fascination with the arcane. So, while your individual Telvanni Lord may well be capable of, say, summoning hordes of Daedra or surpassing the boundaries of life and death itself, as a House they're not as powerful as Hlaalu or Indoril. Add in the fact that they barely communicate with each other except when attempting some assassination or other and you have less a cohesive organization and more a disparate collection of semifeudal mage-lords who each rule their fiefs independently and as they see fit. I suppose you could argue that if the Telvanni actually bothered to look beyond their own noses they'd be a terrifying force to be reckoned with, but the ability to look beyond one's own nose is not a widely-held virtue amongst the Telvanni, Aryon being a rare exception.
I think you're confusing the issues of which house
exercises the most power, and which house
has the most power. When it comes to things like influence over imperial agents, or control of mineral resources, Telvanni has that covered. Iirc, Aryon has a glove that lets you cast a powerful charm spell which will dominate damn near any NPC in the standard game. Most other magisters have at least the capacity to cast such things as spells. Telvanni doesn't bother fighting political or territorial battles because they don't need to control a man or a patch of land in order to get whatever they want from it. They need to get a certain man to act a certain way? They wave their hands and have that man mind-copntrolled. They need a certain resource in a certain area? They can fly, leap over mountains, walk on water, teleport, and become invisible.