bethesda swore up and down they wouldn't do this.
Personally I like the idea of doing a whole region like maybe the Elven nations of Valenwood and Summerset Isle.
Or maybe Hammerfell and High Rock since they got pretty shotty appearances in Daggerfall.
The Thalmor didn't ban Talos for any of those reasons. To be frank they didn't ban Talos for his possible Lorkhan connections at all.
They believe that they are the descendants of the Aedra that created the world. Litteral gods. The running idea is that when the Aedra created the world many of them had to give up their power and become "less" (there is evidence that the elder scrolls may be some of these fallen Aedra)
The Thalmor believe themselves to be descendants of those guys. They think that worship of Talos is "keeping them mortal".
Moreover the Nords might have the right idea with their reverence of Shor (basically Lorkhan with a different name) because they see him as the bringer of life to the world.
The debate then is whether you think that Nirn itself deserves to exist.