A little flashback for those who played Daggerfall, and to those new generations...
*opens Daggerfall manual*
Page 83, bottom
[Talking about Dragons]
"...Explorers, sages, and archivists have argued for centuries over whether the great dragons of the legends still love, if in fact they ever existed. The people of the Alik'r Desert insist that their vast plain of sand is home to a multitude of Great Wyrms. Granting the nomads their propensity for tall tales, if they were a forsaken land where the great Dragons still fly undisturbed, it would indeed be the Alik'r Desert."
Personally, when I was trekking across the deserts, I did not see any dragons or hints of dragons. From the manual, it seems that Dragons were just legends and to most don't really exist. After I saw the trailer for Skyrim, I'm thinking "Ah yes, there they are! Welcome the dragons!"