Tamriel/Mundus is not a part of Oblivion, rather, the various principalities of Oblivion are ontologically cretinous imitations of Nirn - rather like Plato's formulation of the divided line and thus the allegory of the cave - or more simply put, the realms of Oblivion are imperfect, less-real xeroxes of Nirn. This is why it is such contested ground, the metaphorical "Arena".
At least, that's my theory.
They would argue it's a better version.
"So the Daedra Lords created the Daedric Realms, and all the ranks of Lesser Daedra, great and small. And, for the most part, the Daedra Lords were well pleased with this arrangement, for they always had worshippers and servants and playthings close to hand. But, at the same time, they sometimes looked with envy upon the Mortal Realms, for though mortals were foul and feeble and contemptible, their passions and ambitions were also far more surprising and entertaining than the antics of the Lesser Daedra. Thus do the Daedra Lords court and seduce certain amusing specimens of the Mortal Races, especially the passionate and powerful. It gives the Daedra Lords special pleasure to steal away from Shezarr and the Aedra the greatest and most ambitious mortals. 'Not only are you fools to mutilate yourselves,' gloat the Daedra Lords, 'But you cannot even keep the best pieces, which prefer the glory and power of the Daedra Lords to the feeble vulgarity of the mush-minded Aedra.'" -http://www.imperial-library.info/content/morrowind-monomyth-cyrodiilic-shezarrs-song