I looked around for an answer but no luck. Why dont they build more around Bay lake. Seems they are only using less then half of the land around it.
Not an official answer, but I would have to think that Disney and guests do not want to look around the water's edge and see nothing but development. The natural landscape (especially near Wilderness Lodge) adds to the feeling of resort and relaxation.
Access and ground suitability.
Although the north and east shores are within WDW, access to and from the area would be constrained. Not to mention ground quality. One area is suitable for development, a few other areas are marginal but too small for anything substantial.
(Of course now you'd have to think how much a resort from scratch would cost in that area)
The Persian plot would be prime space but if that's not utilised for a resort I dare say nowhere else on the Bay would be too.
Register on WDWMAGIC. This sidebar will go away, and you'll see fewer ads.