I personally don't really view the Mythic Dawn Paradise as an afterlife, it's just a training ground to prepare for the trip back to Tamriel. If you've done the quest for the Black Star, then that is how I view it. Instead of going to where you are supposed to upon death, you are chained to the newly created world and stay there until released into the world somehow, or your object is shattered.
On a side note, was Camoran's Paradise being anchored by the Mysterium Xarxes, and if that book were to be destroyed, Camoran and everyone inside would cease to exist if such an event occured?
I'll start by saying that I agree with your line of thought, however, I'd like to add to it.
If Camoran's Paradise
is just a training ground for the attempted conquering of Tamriel, then because the Mythic Dawn worship Mehrunes Dagon, I personally think that His Realm in Oblivion would then be their resting place.
As a Skyrim specific afterlife, the Thieves Guild quests explain it best.
Nightingales serve Nocturnal, upon their death, they serve her for an undisclosed amount of time on Nirn as a Ghost/Wraith but then move at Her calling to serve her in the Evergloam. They die, they go to Nocturnal's Realm, and it doesn't matter what race they are.