Because no one cares about the Black Marsh in game? I'd like to give them some leeway to dazzle us with an amazing new something, even if it doesn't forever change the rest of Tamriel.
On the other hand, again, Argonia has enough established lore to keep a player entertained without needing its own Atlantis. Nagas, worms that act as trains because they digest so slowly, komodo dragons, quetzalcoatls, http://www.youtube.com/watch?v=-2YjyharfZ0&feature=related and mother[censored]in werecrocodiles, man.
I'm not arguing that it hasn't been mentioned in the lore or that it doesn't make sense given conventional physics and reality, just that neither of those are necessary for something to be considered an interesting idea or for something to be introduced in a fantasy setting if the person in charge likes it.
I wouldn't expect the werecrocodiles, we were supposed to get werebears up in Skyrim.
Then we got basically no werewolves outside of the Companions questline, and a lorebook saying that were-whatevers were probably all a bunch of myths and that nobody's actually seen a were-whatever, and only had accounts of a friend's cousin that supposedly saw one.
Blackreach would be the thing you can compare this to... and an example of not doing it to well, as well, since you have a place where, even to get there, you have to descend through a Dwemer elevator shaft, through a horde of supposedly-extinct Falmer, and then get to a giant underground cavern filled with glowing green rocks and giant jellyfish mushrooms... and the only thing interesting or valuable about all that stuff that an adventurer who got down there and brought back with him was "oh, hey, it's a nirnroot, but it's RED? OHMYGOD, THAT CHANGES EVERYTHING!"
Wouldn't the stories of, I don't know, the supposedly extinct race that are hell-bent on the destruction of mankind slowly marshaling its strength for a return to the surface and bloody vengeance warrant at least a
footnote when you were talking to other people about that big cavern you found? You know, the reason you had to leave, what with it all getting too dangerous to stay?
Anyway, I'm not saying that underwater cities can't be done, but that they need a level of care and attention in their explanation and delivery that I'm not entirely sure Bethesda is going to be willing to deliver on, given its recent track record.