With its feeling of remoteness, its majestic pine forests and its distinct feel, Falkreath Hold was one of the more evocative locations in TES5. With enigmatic locations such as Helgen on the border of Cyrodil, Bleak Falls Barrow, Lake Ilinalta, The Pale Pass, Arcwind Point, Peak's Shade Tower, there's more to the Hold than just the town that the eponymous dungeon implies. Here are a few bits of lore I've stumbled on in my lorebeardings, and reasons I hope zos doesn't consider the region covered with "Falkreath Hold" dungeon:
Falkreath's description in earlier lore as Colovian offered some intriguing questions and scenarios to explore, while giving obvious opportunity to take parts of the area in a different direction. In TES5, certain lines referenced Granite Hill- a settlement you could explore in Arena. The game files indicate a location north of Falkreath, though only low-scale ruins indicate its intended location. We've already seen Falkreath town, and its architecture and society is as Nrodic as it gets. But if "Falkreath" in the old sources referred to the Hold as opposed to the city, there's still room for the Colovian heritage to be explored. Because it hasn't been seen in a modern game, perhaps Granite Hill served as an Imperial Foothold during this time?
Another opportunity exists to capitalise on a really interesting angle zos themselves created: They mystery of King Kestic. You might remember him as one of the reanimated kings you fight in Skyreach. He was summoned, along with seven other nedic kings, by High King Durac to Skyreach, where he was murdered by Vimaril the Betrayer, because Durac's daughter- Vimaril's love- was promised to Kestic in order to cement alliances. But the interesting thing about Kestic is his description as The Forest King, who lead the northern clans of the forest region. He wears conspicuous deer antlers on his helm, and summons a bear to fight for him. Now maybe this was a throw-away description that never had much thought put into it, but its interesting to observe that not only does Upper Craglorn straddle the border of Skyrim, but that Falkreath, a hold defined by its pine forests, lies just to the north of Skyreach. Older sources reference the same idea: "The Men of 'Kreath" were named alongside other nedic tribesmen enslaved by Ayleids of the Heartlands. Notably, they were described as having been taken from northern lands.
Did once there stand an important Nedic clan stronghold in the forests of Falkreath? Wherever it stood, it must have had considerable political clout for a Nedic High King to seek to cement an alliance.
The "Old Holds"- those in the eastern half of the province, have been described as more traditionalist, perhaps more "Atmoran" than those further west. The division between east and west, which we see in ESO, and perhaps in a more veiled form in TES5's Stormcloak/Imperial divide could be interpreted as having deeper roots. Nedes were in Tamriel before the last wave of the Atmorans -Ysgrammor's people- arrived. His conflict with the Snow Elves is already well-known, but the contact and subsequent co-living between the Atmorans and the Nedic people they must have encountered has never been explored. A situation might be imagined similar to that of the Picts and Scots in Real World Northern Britain, where no record describes assimilation, but eventually its all Scots living in Scotland. It may be that in the east, Atmoran blood might be almost pure, where towards the west it is somewhat more cosmopolitan, and while for thousands of years since they all consider themselves Nords, echoes of differences could drive different dispositions, perspectives and deep-seated conflicts.
There are lots of interesting possibilities that zos might consider if they ever decide to tackle the enigmatic Falkreath Hold. There are opportunities to capitalise on player's desire to revisit some of the amazing locales we saw in TES5, but also, when accounting for obscure, but interesting and important lore (including really compelling threads they, themselves have woven), there's a lot of new stuff, new angles and new stories for this land to tell. I really hope we get to go back to Falkreath one day.