He might of intended it, but he really didn't work hard to make it happen, and he probably hurt the chances. I'd say the Dunmer would have a hard time worshipping Daedra again, after the whole invasion and the Trial of Vivec. Especially since Winged Twilights were at Ald'Ruhn.
According to Oblivion's rumours, everyone was turning to Daedra, it seems.
Does anyone know what religion Helseth adheres to, by the way? That seems like an important point.
Helseth is a pragmatist. He joins the religion that can give him the most benefits.
He is probably not a devout Temple member though. From the quest to find the Temple Informant:
:Temple informant:
"King Helseth joined the Temple when he arrived in Morrowind years ago. But the Temple is the enemy of the Empire, and King Helseth is an Imperial in every sense of the word. Now -- will you help us find a Temple informant who can tell us whether the Temple is willing to accept King Helseth -- or whether the Temple plans to act against him?"
Also, it seems that many Hlaalu are joining the Imperial Cult. From "A Brief Life of Uriel Septim":
Uriel worked through shadowy agents of the Blades and through the court of King Helseth in Mournhold to shift the center of political power in Morrowind from the Great House councils to Helseth's court, and took advantage of the collapse of the orthodox Tribunal cults to establish the http://www.uesp.net/wiki/Tamriel:Nine_Divines as the dominant faiths in Hlaalu and Vvardenfell Districts.
And from "Caius Cosades' Letter":
There is little to report from Kragenmoor. As you may well imagine, interest in our Akatosh shrine has increased ten-fold since His miraculous intervention. We experienced little of the Gate disruptions you saw in Cyrodiil, but what we did see wonderfully focused the minds of skeptics, back-sliders, and old-guard Tribunal worshipers on the manifold glories and powers of the Nine. As I have told you, House Hlaalu has always been but a lukewarm guest to the feast of the Nine, but I am seeing more heart-felt interest in divine counsel and prayer than in years past. It is unfortunate that only such a terrible calamity can awaken the mind and spirit to the comforts of the Faith.