there is stuff about gods and monsters in the bible and there is a horror movie about nazi elves during christmas called Elves
And there's a million steampunk books at my library. At least gods and monsters can be interesting beyond it's novelty. Vivec definitely draws from real world stories, just like Talos does. But I've yet to see anything like the Thalmor.
Point is, TES is unique because it isn't one of the million steampunk pseudo-industrial dregs I see all too often, choosing instead to go full mythic.
EDIT: And as to the thread title, the world does change and progress. Just not as a copy of the Fable franchise or somehow unbelievably shoehorned into being 'the real world with magic and elves." Spells are lost, rediscovered, reinvented. Empires fall, rise and strive. There are new stylistic and design choices made in art and architecture.