I don't see why not. My initial examinations of the toolset suggest that it's pretty much standard for Bethesda. I was thinking of keeping the stronghold largely the same as it is now, but adding things like an arcane enchanter and alchemy station, making it so that everything in the stronghold becomes owned by the player once it's cleared, and so on. Possibly include a new NPC - an imprisoned scholar the bandits have "recruited" to unlock the secrets of the forge - to provide in-character exposition. He wouldn't be recruitable, though. In his words: "I've heard stories of what happens to adventurers. I like my knees just as they are, thank you."
Edit: While reading up on Lorkhan and the forge today, I noticed something amusing, and I wonder if it was intentional. In the book The Lunar Lorkhan, it is suggested that the Aedra are physically planets rather than planes. There are nine major Aedra, but current convention is to only recognize eight, a fact that has caused much controversy since the change was officially made. Which makes me wonder: Does this mean that Talos is Pluto? Which in turn raises another question: Which god does Uranus represent?