If you look at the satellite photo of EPCOT there is hardly room for 7-8 new countries without some kind of buffer in between countries. However, there is certainly a large plot big enough for a new country between China and Germany behind where the current Australia mini-country is. EPCOT has always been my favorite park and I would love to see WDW finally expand on the World Showcase other than restaurants, all though I do like the new dining options too. As far as this article stating that an inside source claims that a new country will be added between France and Morocco, I would think that it is more likely that they would use the plot between Germany and China seeing as it twice the size of the plot next to France. I think that Greece would be a good option too and I hate the Russians, but they do have a rich history that could make a good Showcase as well. I could see a mini Red Square with The Kremlin and an interactive Lenin's Tomb, call it Commie Talk with Vladimir. Just kidding. Anyway I hope this come to fruition. If you look at the Google Satellite view of EPCOT this all makes a lot more sense.
I think it is funny that two people can look at the same thing and see something completely different, because I easily see room for about 7 countries when looking at an aerial view :shrug::lol:
Wickedfan07 has a good picture illustrating where those countries would fit. Of course, it all depends upon the scope you are talking about, but when you compare existing countries to the available space, and amount of space between certain countries, 7 is defintley possible. Consider also that if you have an indoor pavilion like Mexico, the front/entrance could be smaller than the show building which could be covered with trees and give the appearance of a larger "buffer".
However, if you look at Norway and China, I don't think there is much of a buffer there. And I think also that so many countries appear to have buffers because there are so many available "pads" still left.
With the assistance of wickedfan07's picture, it looks as thought there is a pad about the size of Norway between Norway and Mexico, the outpost could be one big country or two smaller ones about the size of Germany, Italy, or France. There are also spots about the same size between Germany/Italy, Japan/Morocco, and Morocco/France. There is also the International Gateway which I imagine could be converted into another country pavilion as well unless it is desired to remain neutral.
Also, I was not aware of an Australian area in WS, I thought that was the African Outpost where the Equatoral African pavilion was originally meant to be built.