BTW it's gone now, as is Ald'ruhn. Skar was rewoken but eventually destroyed in the Oblivion Crisis (http://pnmedia.gamespy.com/planetelderscrolls.gamespy.com/fms/images/potd/3826/1171408430_fullres.jpg) by the Daedra, so you can include time distortion in your mod ;]
All crabs and lore aside (desert Argonians? ;/), I like your canyon, but more as modder's resource. We rarely see new environmental models nowadays, so it's always a good thing. How about creating a more concept-art-friendly Gnisis after you are done with Ald'ruhn? http://www.imperial-library.info/gallery/mw_TAoM_p12.jpg. It could be a cool little town...