About the Thalmor, I think I remember that the Elves consider themselves of the same kind as the Gods, but severed from them by the act of creation, which is why they see Lorkhan (or his equivalent) in a negative light. So undoing creation to gain back their place does sound like what a group of very nationalist high elves could do.
I have a great idea: TES Atmora as a MMORPG set in this deserted continent, no NPCs, with just the players discovering a new world!