I was looking through the Bink video files (player) in the \Oblivion\Data\Video directory, and noticed something strange in CreditsMenu.bik...
Anyone who has played Oblivion will probably notice that Sutch doesn't exist in the game, and is certainly not where it's shown in this video.
Also, the name suggests that this video is shown from the main menu's "credits" option.. it isn't, the credits just scroll over the existing background ("Map loop.bik"), which seems to avoid Sutch's location.
My guess is that the city was planned and removed. I wonder if the credits video is shown at the end, or if it was an accident to include it?