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It immediately screamed High Rock to me... even seemed like that ruined castle atop the hill could be the ruined Orsimer capital (though that latter part is certainly a stretch).

Everything about that region says High Rock, and given its connection with Hammerfell I wouldn't be surprised if it involves both. If not, people should remember that just because it's a smaller province than Skyrim the devs don't need to make a smaller game world... they can scale it however they like. It seems odd to me that people seem to believe it needs to be scaled exactly to the same ratio that we saw in Skyrim given they've modified it in every single game. 

Between the western medieval setting, the drama surrounding the bretons, the conflict with the Orsimer, the decentralized chaos of the region, and the (probable) presence of the occupying Aldmeri dominion, it is easily the best province for the next game in my mind.