You know, if you read the lore then you realise that the nerevarine screwed a lot of people over unintentionally.
He destroyed the Heart of Lorkhan, weakining the tribunal. Almalexia went batshit due to lack of power and killed her brother, Sotha Sil. She then released mechanical demons to terrorise a whole city.
When Vivec's power gets too low, he ends up dropping the ministry of justice (the moon over Vivec) onto Vivec City. This moon was falling many years before, and when Vivec dropped it...it regained all it's velocity and blew up the city. Vivec city became the Scalding Bay. Red mountin erupted, basically fucking over Morrowind fully. dark elves move to Skyrim, where they are persecuted by the nords.
Now, onto Oblivion. when the moon hit Vicec and red mountain erupted, it pretty much broke red mountain. I won't explain how (that goes deep into the lore with the magical towers on each province. Red mountain was the Morrowind tower.), but that weakened the bonds of Oblivion, letting Mehrunes Dagon and his followers wreak havoc all over Tamriel (not just Cyrodill had gates). As a result of this all, the Septim Bloodline ends to save the world, and this causes turmoil and wars and shit.
This all leads to the Thalmor beating up the Empire, forcing them to condemn Talos worship, and causing the civil war in Skyrim.
I haven't got as far in Skyrim to know how the dragons appeared, though. So I don't know up to there.
And I agree, I wish Sjyrim had spellmaking.