I think that Jyg realized that it was pointless. He knew that he'd barely have the time to destroy everything that he'd become Sheogorath once more before being able to rebuild the Realm as Jyggalag wants it to be.

Both Sheogorath and Jyggalag want to break this cycle. Sheogorath to protect the Realm as it is, Jyggalag to be freed from the curse. Sheogorath's gambit helped Jyggalag understand that to break the cycle, he had to no longer behave as he did every time. So what was the thing he did every time and thus should refrain from doing this time? Retaking over the Shivering Isles.

So, he renounced them. He abandoned them. He's giving you all his madness and all the part of him that is Sheogorath, and will stay away, far away, from the Isles in the future.

But he still kept much of his power. And he's a Daedric Prince. What is he going to do in the void of Oblivion? Why, create a new Realm of Order, of course. One that will be untainted by the history of madness of the Isles.


Now this is but one way of looking at it. Another way is that the cycle is not broken and that Sheogorath was lying, knowingly or unknowingly, when he was saying that such or such thing never happened before. I refer you to Arden-Sul, Agnon, and the myths of the Heretics and Zealots about how Sheogorath is a mortal usurper... Since the Realm is the Prince, what if Jyggalag going in the void simply means that he dissolves and reform as the Shivering Isles? And as such, slowly reemerge as Sheogorath as he melds with and takes over Sheogorath's previous mortal champion?

It's simple, really, if you don't think about it.

Now you may call this madness, but after reading this I've had an idea about it.

Jyg's plane is actually made up of his place of order, and the Shivering Isles. Before you came along, when the era ended, Jyg would reform in his own realm and see the Shivering Isles in part of it(much like Camoran's paradise). The crystals were where the realms would mix in a way(being they were conduits into the realm). Being a prince of order, he'd be appalled by the chaos within that part of his realm and destroy it completely to make sure the entire plane was orderly, but the curse would return and Sheogorath would rebuild SI to suit himself instead. Jyg/Sheo were stuck with this until you came along. Jyg couldn't get rid of the SI from his plane, since it was part of himself. When you became Sheogorath and split him from himself he was able to sever the SI from his own plane. They are seperate now. Camoran wasn't a prince in his paradise because he was in Mehrunes plane still, so Jyg wasn't sure what would happen to you. You essentially have your own plane now. Does that make you a daedric prince? It's never happened before so neither Jyg or Sheo knew if you'd be a prince.

Let me supposify for a moment

Remember what Jyggalag said? "Perhaps you will grow into your new role" Maybe the player is now connected to the Isles, as Sheo, but the Connection simply needs time to strengthen. The font of madness is the blood of the Isles. Probably, I think this because after you become the new madgod you can use the pools of madness to heal... The player establishes a connection to the font, the blood of the Isles, making him/her the new avatar, meaning that he/she is now Sheogorath. The player cannot currently teleport some 50 miles above execution point, but maybe after 5,000 or so years growing in power...