User blog comment:Dmahurdle/Shrines, Lore, and Talos/@comment-87.122.34.78-20120418103757

Firstly i think the banning of Talos is not out of pure arrogance. Talos destroyed the First Aldmeri Dominion which probably has the Thalmor a bit miffed. Forcing the Empire to forbid the worship of the Man who founded the Empire and destroyed the First Aldmeri Dominion is also a sign of Dominance.

Secondly, as seen in Skyrim, the banning further destabilized and weakened the Empire, regardless if Skyrim eventually seccedes or not which is obviously in the interest of the Dominion.

That aside, the blessing of Talos reduces the Shouting-CD, so to "normal" Humans his blessing has no noticable Effect at all, which should help in disputing his godhood.

In the Elder Scrolls, gods obviously exist, mortals have risen to godhood, and i'm pretty sure Talos actually makes an appearance in one of the Games, so i'm pretty sure he actually is a god.

And lastly, to your final question: I'm neither a lore-buff nor do i know of any lore about the Shrines, this is just me rambling.