Practice area. That's all....a practice area. Not a barroom brawl....not an explorer zone. Practice.
Different difficulty levels for picking locks, hiding from 'critters' (a warforged standing there saying "I see you!" if you aren't hidden well enough). Same for target practice and so on. Call it a House Deneith Obsticle Course/Training Area. There are some quests (i.e., ToD and a few others) that require twitch skills that need to be worked on without beating ourselve or equipment up.
Meh....take it for what it is.