Realism probably. You can see the Red Mountain from the top of the Throat of the World.
You know, I've wondered about this one, as Red Mountain looks rather un-exploded. Warning, big images ahead. Compare the before (http://upload.wikimedia.org/wikipedia/commons/8/8c/Sthelens1.jpg) and after (http://upload.wikimedia.org/wikipedia/commons/d/dc/MSH82_st_helens_plume_from_harrys_ridge_05-19-82.jpg) images of Mount Saint Helens. When a volcano explodes, it's not left with a pointy top. For a volcanic eruption big enough to wipe out Vardenfell, Red Mountain is curiously intact.