It even has drug induced brainwashing and coercive sex slavery, and it sees its inner circles (and the sufficiently devout) as gods in the making. This is full Thetan tear lunacy, but because totemic magic words like "SCIENCE" and "LOGIC" are slapped all over the outer walls, it hasn't gotten the same scrutiny.
Skooma is made from Moonsugar. Moonsugar is literally crystalized light from Tamriel's moons. Which the Khajitt occasionally visit by climbing up on each other's shoulders until they can reach the moon. This is at least as true as any other competing theory, like the theory that the Moons are the rotting body of a God after his heart was cut out and fired across the world.