... there was indeed more planned for the add-on, including a Broken Valley type region. Given the time and resources available, it was decided the game as a whole needed more of a city hub with quests than another open area with exploration, so that region was cut.
The screenshot with the signpost was from a test level early in the development process.
Pity, we need more Broken Valley type regions!  My one criticism of ED is that I wanted more places to explore.  And I eventually found the screenshot (I thought I had it squirrelled away somewhere, but apparently not) and found a bunch of other demo things that seemed to be mostly set in a proto-Broken Valley.  Which I guess, similar to the Broken/Mended Drum, would've just been The Valley at the time.
I liked the D2:ED ending, actually.
:o
We'll never see its like again.  I hope.
Not to get too far off topic
Er, quite; some people are too disruptive.  I'll just go and ban myself for a week. 
