Well what if technology is like going backwards? Think about it: when the Dwemer (?) were alive they had these great big machines and explosive devices (as seen on Redguard) that would blow you to pieces! Then we are cut back to crossbows and levitation and shuriekens (as seen on Morrowind), then we are cut even further back without that stuff,as seen in Oblivion. In the early stages of the european continent, civilizations were constantly learning and forgetting different technological advancements (such as writing) due to lack of communication. What if that is what The Elder Scrolls Universe is suffering?
OT: No, if you read the Elder Scrolls history on the UESPWiki site, there will be some massive floating city or whatever that shall be terrorising Tamriel so that is what the game will probably be about, I also think that we would have no way of knowing how quick technological advancement comes for these worlds (Fable 2 and Elder Scrolls), because they are a seperate WORLD, there muskets or whatever could very much be extremely powerful due to their discovery of magic, I dunno, we should just go with it if it happens and see if it works ok.