By 'Dagons birthright' do you mean his birthright to destroy or to rule? What would he be liberating it from? And more importantly what would he be liberating it to? If he did conquer Tamriel wouldn't it be a wasteland of sorts afterward? If so, I would hardly call Dagon a hero "liberating" Tamriel. IMHO.
His birthright to destroy. Not only destroy the world "as we know it", but completely. This would make the mer (and men) "free" again (eg, return to their previously state as Ada) and that is part of why Mancar is following Dagon.
As for Dagon, he also wants to return to his original state as the "Leaper Demon King", but he is "cursed" to not be able to do so untill the world is destroyed.