User blog comment:Dmahurdle/Shrines, Lore, and Talos/@comment-58.69.55.246-20120423114332

Talos is a God here is evidence http://www.uesp.net/wiki/Oblivion:Blood_of_the_Divines

Quote from page:

The Blood of the Gods
Martin tells you the next ingredient to open the portal is the Blood of the Divines. Speak to Jauffre to learn that the blood of Tiber Septim (who became the god Talos) can probably be found on his armor in Sancre Tor. These catacombs were sealed by the first Grandmaster of the Blades and any who have tried to explore have never returned. Jauffre gives you a key to Sancre Tor and wishes you luck.

so yea and throughout history the races of mer have been enslaving races such as man and the beast races such as khajiit and argonians and still continue in morrowind before they were conquered into the empire. there was prabably a reason as to why none of them were gods.