http://uesp.net/wiki/Skyrim:Babette#Notes
Now, doesn't this seem like a golden opportunity that Bethesda TOTALLY passed up? Wouldn't it have been interesting to hear her opinions about the Rule or Jagar Tharn, or to hear about how Skyrim farred during the Oblivion Crisis (since we only followed the Champion of Cyrodiil and don't know how other provinces fared during it)?
Better yet, give it some gameplay- and story-based repercussions. Make it so that Astrid goes to Babette for any history she needs.
Why didn't Bethesda do this?
Well, I hope a user mod can correct this mistake.