It's funny that they set up a specific time of month when she can be easily assassinated.
...Yes, I realize what that sounds like. No, that isn't what's intended.
Anyway, in my game it sort of glitched after the Stark Reality spell. She's still walking around in her knickers. >_>
Possibly the same reason the Nazis carried out many of their torturous experiments on "lesser races": science (though rather unethical).
Or perhaps she just likes to hear them squeal. I'm surprised to find out it's not quest related. Speaking of which, there's a guy in the IC with some rather odd gardening habits, if you look in his basemant. Lots of blood, implements of torture, and...flowers. I can't recall the name, but he's an Imperial with a wife who complains about him in her rumours.
Amantius Allectus. He was trying to create and sustain a vampiric variety of plant, but abandoned it soon after he started having to attain human blood for them.
http://www.uesp.net/wiki/Oblivion:Amantius_Allectus%27_Diary
Note: It would be interesting to see hazardous plants like the Drinkers in TES V, I think. It was tried in Oblivion with the Harrada, but with the scaling it was more a nuisance than a danger. I'd like to see something like a Noose Tree that grabs you and drags you across the ground when you step into it. They'd have to add in the ability to defend and maneuver for attack while knocked to the ground, but that might add something in itself.