That Keyes didn't take advantage of some of that juiciness is an unfortunate consequence of his limited time working on the novel and StoneFrog's silly sentiment (unfortunately shared by many) about it being irrelevant to anybody except the "Daggerfall players"; a post-Morrowind revamp of the Bay could be a very compelling setting, indeed.
Not to start an argument here, but Daggerfall was my first TES game and still is my favorite of the entire series. What I'm saying is that both Bethesda and much of the fanbase seems to have cast it aside, barring historical reference to the Warp in the West. Of course, this is like saying Bethesda doesn't care about Pyandonea since so little is known about it, but I oft have this hanging paranoia that Bethesda is trying to draw emphasis away from that region.
Still, Gothryd (though not to the extent that Lysandus was) seems to be fairly pro-Empire, or at least not resisting it. Considering a strong concentration of Blades organizations and a region littered with fragmented sects of the Imperial pantheon (not necessarily a bad thing), I think it could play a pivotal role in future lore. But only if Bethesda decides to re-locate focus on the West, something which hasn't been done in a while.