So this is something that's been bugging me for quite a while, and that I've been contemplating on and off. I should warn you, a lot of text incoming.
Because it's just downright strange. Consider:
The ruins of a Great Gate outside the city.
The barricades and the survivors of Kvatch.
Hirtel's raving about something coming over the walls.
The Oblivion Gate just outside the city.
To me they all seem to suggest a specific progression of events:
So the Mythic Dawn knew Martin was at Kvatch, but apparently couldn't identify him, or they'd have sent assassins. There's no other explanation that I can think of for the attack on Kvatch. Fair enough. But why the Great Gate? The walls and city gates are still standing, and if they'd brought a siege crawler like they had for Bruma they'd have had to level something to get in, and they would've trashed the whole city in the process. So it couldn't have been one of those.
Then there's the issue of Matius and the survivors who fled the city. But they would only have survived if the Great Gate was already closed, and the lesser gate before the city wasn't there yet. So if you've opened the Great Gate to destroy the city, why close it before you're done? The only reason I can see is that something must have gone wrong, and the Great Gate collapsed. But something still caised the damage in the city, some pretty significant damage. So what?
Hirtel says "There was a huge creature... something out of a nightmare... came right over the walls... blasting fire" Now while he's undobtedly an unreliable source, he seems to be the only one alive who saw whatever it was that did so much damage. Something that didn't need to go through the walls to do it. Mehrunes Dagon perhaps? After all, he did destroy the city of Mournhold, so it could be that he'd try something similar at Kvatch. He came through the gate to destroy the city personally, but for some reason was thrown back, taking the Great Gate with him.
Which brings us to the lesser gate, the one that sealed off the city. It's presence makes no sense. Why attack the city, only to damage it, then withdraw and seal it off? This certainly suggests failure, and an attempt to salvage something from it. This also explains why Dagon didn't take a hand in events sooner, since he'd already found that he couldn't act personally, forcing him to work through the Mythic Dawn, until Camoran's death forced his hand.
So that's my theory. Anyone else got one? A different take on events? See a flaw in my reasoning? I'd love to hear what any of you guys think.