This is the first passage of the Anuad to have occurred within the dream of Anu. The twelve Et'Ada which would become the Aedra are flourishing within the dream as continual spirits along with those who would be Magne-Ge, Daedra, and Earthbones. This is also the point where Anu personifies himself and Padomay within the dream. Elven mythology calls these "Dream Versions" Anui-El and Padhome. Padhome's sword which "shatters the twelve worlds" is Lorkhan. This is the trick which forever changes both Lorkhan and the other 11 Aedra as they "shatter" pieces of themselves off in order to create Nirn. Anui-El, the force of stasis cobbles the pieces together into the planet Nirn and henceforth he and Padhome are left out of the confines of the Aurbis.
This is the passage which details the labeling of Et'Ada during the end of Lorkhan's Trick. Imagine a Venn Diagram of Anu and Padomay. The crossover is the gray area in between, Nir the mother of Creation. Those Et'Ada who preferred stasis, the Magne-Ge which fled creation, became the stars. Those which had never even joined in with the trick at the beginning and had preferred their home which was like the void became the Daedra: the had zero connection with creation. Those "Twelve Worlds of Creation", Creation which was born of Nir, are at the center of the Diagram and became Aedra.
Here are the Hist and the Earthbones in the chaotic world in the moment before convention. These Et'Ada were the only ones to survive the actions lead primarily by the 12. The Aedra are among these as well.
And here is described the convention of the divines after the creation of Mundus. The fragment of the "Ehlnofey World" is the Adamantine tower, the spaceship of Auri-El. The convention fortifies the seperation between Mundus and Oblivion, as well as solidifying the laws of nature. A war breaks out ending in Lorkhan's death. Those who support Auri-El degenerate into the Aldmer and attempt to preserve things as they once were. Those who support Lorkhan leave the convention to wander the new realm they had created. These Ehlnofey become the men. Finally, the "Twelve Worlds of Creation" rise once more as gods and those they leave behind keep Mundus intact.
This seem like a logical explanation to anybody?