Penitus (inward) Oculatus (seeing)
The meaning doesn't matter. When your name rhymes with a synonym of dike, it WILL evolve into that other synonym.
It's like the words ice and ASSet when pronounced by Arnold Schwazenagger.
1: If the Thalmor are able to find out who is worshipping Talos, then their plans have been vindicated. Right now, with the shortage of Talos worshippers, people can't afford to be martyrs,
2: Yeah, that seems about right.
3: The Thalmor signed it with the inention of making the Empire a protectorate in all but name. But the Empire signed knowing they could just pretend they were following the Thalmor's orders. And the Peniccus Occulatus is more like the FBI in that it deals with internal security.
1. I don't really get this, whose plans? The Thalmor, or the worshipper?
3. The Thalmor planned to eradicate Talos by reducing the number of people that believed in him. It doesn't matter what your condition is: protectorate, slave, etc. The goal is not destroy mean, but to destroy Talos. Men will be destroyed after that (which is easy when you practically have elite agents all over the place)
Also, Penitus Oculatos was born after the Blades was disbanded, the Empire no longer have any other "agent" except for them, while America has CIA along with FBI. This means, even though their name rhymes with dike jokes, they do what the Blades did: which is doing secretive ops, including - supposedly - espionage, and with less whining about dragons at that.
Surely you're not implying that the Blades are nothing but swordsmiths because the name is "Blades"?