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> Mantles Sheogorath
> Goes back to Nirn to do some daedric shrine quests
> Daedric princes still consider me a mortal
> ???

Edit: Ok, I just realized what I posted was useless.

Well, they're right. Try dying; it still works.

I guess it takes a while for the madness to set in.

It's easy to argue that you're doing the quests out of canonical order, but this is worth analyzing, actually. You can technically kill a daedroth. It's very difficult, but it's doable. Mortals can not kill them, only dispel their physical form temporarily, but the histories do record daedra and aedra being destroyed in some manner unless I'm very much mistaken. Maybe what the Daedric Princes are actually trying to do is remind you of how new you are at being immortal and how much farther your character has to go. You know, remind you who's boss around here.

At least they had the foresight to re-record the Sheogorath shrine quest.

Whilst we do mantle Sheogorath, it is implied it takes a while for our powers to completely grow and whilst we beat up Jygglag, the Princes are unaware that Sheogorath is you. As far as they are concerned, we are just another mortal that is interesting. Most don't care for the Prince of Madness and never there thus wouldn't care about his business unless he was annoying or threatening them. It would be really embarrassing for Mehrunes to find out that Sheogorath techincally defeated him for COCs that mantled Sheogorath before completing the main quest.

It's a gameplay reason why we aren't uber powerful. No fun if everything dies in one hit. That and we're already powerful enough. A proper powered Prince would not only break the game, it would shatter it into a trillion pieces.