Thank you everyone for the input. I'm glad to know that some of them may have escaped and that I may have a chance to meet up with them later in the game. It just really annoys me that the game developers glossed over this whole situation. It would have been so much better if there had been a longer cut-scene to show the outcome of the Broken Valley NPC's. I mean it's bad enough to kill off all the Broken Vally NPC's, but it's thoroughly frustrating to kill them off and not give the player a proper cut-scene to show the struggle the NPC's faced.
I mean there was a very short cut-scene of Damain smiling evily aboard his mount with fires all around him. But that was about it. There wasn't really any specific or precise visual explanation as to the fate of the NPC's.
The other thing that bothered me about this, is that once going into the Sentinel Island and Fjords it's as though I'm starting over from scratch with all the NPC's. It just makes the game transitions between areas feel less smooth and interrupts the whole flow of the storyline. ...at least in my opinion. I still like the game, it's just frustrating.