Lovecraft in the land of Khajiit

I think I found the Bethesda's first source of inspiration for Elsweyr: H.P. Lovecraft.
You should take a look to his Dream Cycle. Lovecraft wrote a lot about drugs, dreams... and cats. The Dream-Quest of Unknown Kadath especially is very interesting. Cats are described as a secret civilization of wise and powerful beings that can jump up to the moon and raise armies.

(If you read it, replace:
cats by khajiits
zoogs by bosmers
moon-beasts by sloads
Nyarlatothep by Mannimarco
and the Pnakotic Manuscrits by the Elder Scrolls.
And you will have a story that could happened in Tamriel! )

The Dreamland have also strange landscape and interesting locations that could inspire us. The Underworld is a little too horrific and don't have to be included but it could gave ideas for the narcomancers.