So, not long ago I had a Bounty in the Pale, on my way to flee towards the Rift, I decided to stop and spend a night in the Nightgate Inn...

as I entered, I was attacked by Fultheim, who I quickly dispatched and continued my escape from the Hold...



However, Fultheim came at me with what appeared to be an Akaviri Katana... such a sword design is not of common use outside of the Blades (Well, except for in Akavir and a few Daedric Artifacts I guess)..



was Fultheim Intended to be another survivor of the Blades (much like Delphine and Esbern)?

He's probably a former Blade, but he just drinks at the inn to forget his troubles.

Some dialogue from the innkeeper along with the sword seem to imply he is a former Blade yes in hiding. The dialogue in question is "Nah, not so much. The odd traveler on the road. But mostly just old Fultheim, come to drink away a lifetime of bad memories, I'd wager."

IMO he is a former blade who is trying to hide from the Thalmor. But he does not know that Delphine and Esbern are alive (or if he does does not care) and they in turn do not know he is alive so do not have you go recruit him.