Perhaps Vvardenfell will be one of those "blank" areas, reserved for expansions?

It really needs to be.
(Maybe unless you start Dunmer)
But as I have pointed out before, no game is ever more unfinished than an MMO, which requires regular updates to keep interest.
If people like me make a loud enough noise, then I believe that no matter what the initial conditions, over time it can be molded into a more lore friendly depiction.