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Peryite is described as one of the weakest of the Daedric Princes despite his plagues being powerful enough to wipe all life on Tamriel. This seems a little contradictory. Wouldn't being the lord of disease make him one of the most dangerous and influential of the Daedra? In addition, vampirism would logically fall under Pyrite's domain since it's caused by infectious diseases. Is Peryite's supposed unimportance the result of unreliable narration in TES lore?

Peryite deals with alot more than just blight but natural order. He has few if any worshipers, his realm is often not accepting of mortals, and of all the daedra his focus is drawn to small affairs(i.e diseases) that try too keep everything in balance. Even his own appearance which is unique amongst the Princes(aside from Mora) and is a clear bid to appear stronger than he is.

Its also worth accounting for these two things as well: 1) Clavicus Vile on his own(i.e without Barbas) is nearly as weak as Peryite especially following the events of Umbra. And 2) Peryite is still regarded as possibly the most important Prince in all of Oblivion and doesn't really see any territorial contest because of that. This makes sense, because so much of Peryite's attention and power is focused on keeping daedrons in check (chaotic creatia that is influenced by the wills of others, imitating life without purpose and risk running a muck n tearing through the realms) which by all means are the lowest of the low order in Oblivion

So no, I wouldn't say it's an unreliable narrator but rather befitting for Peryite. After all his time and focus is spent on affairs others deem too little for them, yet keeps everything from falling apart(literally).

Vampirism is associated with Molag Bal and even Vaermina. Peryite's sphere covers low-prestige diseases, not Daedric curses.

TL:DR: Peryite is the most powerful of the Daedra and is the other side of the coin of Akatosh as lord of time. He is a Daedra doing the work of an Aedra. Peryite's virtues are urgency, respite and maintenance.

I find Peryite’s aspect as taskmaster very fascinating. He brings disease, yet also brings natural order to the world by pestilence cometh. I cannot help but wonder how wonderful this combination is. To avoid pestilence and the collapse of their conceptual world, mortals must labour to complete their daily tasks (and more) set before them, if they are to avoid entropy. Peryite brings disease when things are out of balance and out of order.
I believe it would be right to attribute him also the title of 'the lord of sacrifice for the future'. We ought to complete the tasks we ought to do, if we wish to avoid imbalance and thereby conjure a worse time to be alive in. Peryite gives motivation to complete tasks and take responsibility to work so as to avoid complete destruction when 'the flood' comes in a biblical sense. By flood, I hereby mean disease and disaster, that wipes away the weak and exposes flaws and vulnerabilities, both societal and individual. Peryite brings the concept of time, by a way of the future and the past. Learning from the past, sacrifice the present and fear for the future. Thereby, it becomes sacrificial to Peryite when one completes tasks that are necessary to maintain og continue existence.

He is the aspect of time Akatosh is not. As Yin to Yang, Peryite is the dark, but no less truthful nor less powerful aspect of time.
Akatosh's virtues are: Endurance, his lasting quality, Invincibility, his indomitable quality, and Everlasting Legitimacy, his lawful quality. He promotes the virtues of duty, service, and obedience. Through a sense of duty and a want of service do his followers complete their task and look upon the past, present, and future. The other side of the coin of time is Peryite.
By fear of his coming, separating the wheat from the chafe, balancing of the natural order, mortals wish to complete their tasks and sacrifice the now for the future, in order to avoid their end. The rotting of weakness brings the opportunity for natural strength. It is not through a sense of duty or service that mortals who has, or know, of Peryites coming, labour. It is a figuring part of time, that we are motivated by a wish to survive and also to avoid the uncomfortable by reflecting on the past and sacrifice the now for the future. He is easily forgotten by those who have heard or experience little of what comes with his wings of blight. But each time he commands, all mortals remember why their tasks ought to be completed.

He brings urgency, a quality sorely lacking in societies shielded and protected by prosperity. Death and suffering have the capacity to bring forth urgency. The Lord of the Natural Order brings the reason for time itself, and is therefore greater than Akatosh. He is a daedric prince, yet has taken up an Aedra task and thereby inherits part of the Aedras control of time.
Eternally he sacrifices the present for the future. For to keep ahead of the other Daedric princes’ schemes to ruin the natural order of things, he must always labour.

"Trying to keep ahead of it all keeps Peryite mighty busy, but nobody really feels sorry for him.” – Riparius, Fa-Nuit-Hen's tutor.

Disease can also force respite from labour and bring forth reflection. Maybe one labours beyond once natural abilities. Maybe one labours with the wrong tasks, and ought to find what one has a nature for.
"Peryite, oh Peryite, how I thank thee for thy plight." - Song to Peryite by Taschenfilme