User blog comment:Nerevarine465/Another Peryite Theory/@comment-24349111-20140804211338

First off, Daedric Princes have nearly not enough power in Mundus to make a whole race ''disappear. ''

A few of them might be powerful enough to change a whole race (Azura), but Peryite and Malacath are relatively unimportant Daedric Princes.

Also, the Blight could not possibly have erased all Dwemer in one picosecond. That's impossible. The Blight is a sickness just as every other sickness (except it has a divine origin, but still). You can see several Blight-infected creatures in TES III: Morrowind and even become infected with a Blight strain yourself.

Also:

"I have no idea what happened to the Dwemer. I have no sense of them in the timeless divine world outside of mortal time. And, in fact, if I did believe they existed, I would be in no hurry to make contact with them. They may, with some justice, hold the Dunmer race responsible for their fate. My intuition is that they are gone forever -- and that is perfectly fine with me."

-Vivec

Vivec is one of the most powerful divine beings. He says that he has no sense of them existing outside of Mundus, which means they aren't in Mundus, Oblivion and Aetherius.