The Bladelands setting that Curtis wanted to was basically a re-shaped continent of Folenn that was encapsulated in a magical bubble traveling through space. His idea was to totally blow up Shadow World to get it to that point.
You also had the Hues (reminiscent of the Sunbane from the Second Chronicles of Thomas Covenant), which had different effects on different days, depending upon the color. The Hues also had major effects upon characters. Elves were crystaline beings born out of gem-pools. There was an underground city (sunken) populated by twisted dwarves and rules over by an undead dragon (shades of Dragonlance) and that is only what I remember from the top of my head....
When Curtis left the old ICE he also left with the right to control the setting, even if ICE was the one doing the publishing. Then the old ICE went away and the new ICE came to be, and Curtis "announced" that he was going to publish it (without discussing it first with the new ICE). ICE did not want to be associated with such a setting and did not want Rolemaster used with it (there was lots more, that I don't remember off the top of my head that caused ICE to have issues with it -- and no, I won't even try to go further into those issues, or any more details regarding the setting).