On the one hand you have the slowly-rebuilding Empire (currently) under the whims of the Thalmor
I didn't realize that "slowly falling apart" means "slowly-rebuilding" these days?
4E1: Blackmarsh secedes from The Empire
4E5-6: The Argonians invade southern Morrowind ( = only northern Morrowind remains part of The Empire, and northern Morrowind was nuked by the eruption of Vvardenfell)
4E29: Alinor and Valenwood start the Aldmeri Dominion
4E115: Elsweyr isn't part of The Empire anymore
4E175: Hammerfell leaves The Empire
4E188: Wayrest falls to the corsairs
4E188: Bravil is torn apart in a drug war
So, what's left of The Empire by 4E201? Cyrodiil, Skyrim, northern Morrowind, and the parts of High Rock that haven't fallen to corsairs or similar things yet.
Cyrodiil - these Imperials probably still haven't figured out how to clean up the mess from the Great War yet; also under control by drug lords
northern Morrowind - I doubt that the Dunmer have rebuilt their homeland yet, not without all the useful Argonian slaves they used to have for all the hard work
High Rock - under attack by corsairs
Skyrim - in a civil war.
"Slowly-rebuilding"? I don't see it.