Considering the written records start right after the convention and the Dreughs are significant enough to show up in them, the only room for the Dreugh to be Tyrant Kings is during the Dawn, at which point there were no towers yet to imitate.
It somewhat goes with the formwars Albides mentioned.
At such a time though, all beings that were not divine would be ehlnofex anyway, and part of "mythic aldmeris."
The divide between man and mer came after convention, when Lorkhan was judged, hunted down, and his heart cast into the mundus. Men sided with lorkhan and his followers, while Elves sided with the other divines.
Division after that came from how to interperet the events of Convention, which started among other things, the Velothi Exodus, The Dwemer pursuit of false thinking, The mythical shaming of Trinimac, and friends.
As the seas of Nirn represent the expanses of Oblivion (Padomaic Sea) and Aetherius (Aetheric Ocean? cant recall)--- It is possible that the "Dreugh" are "elves" which sided even more closely with the original cosmology. (Aetherius and Oblivion, with the Grey maybe between)
It is possible they retain an even stronger myth echo of the dawn than even the Altmer keep.