The expansion, due in the second quarter of this year, includes "significant changes to the existing game as well as massive new content additions including spells, magical equipment, quests, locations, and creatures" according to the announcement press release. Derek Paxton, who joined the Stardock team last October after his work on the popular Civilization IV mod "Fall from Heaven", runs the project as lead producer. Here's his take on what they want to do with Fallen Enchantress:
Fallen Enchantress continues the Elemental story in Q2 2011.
In Fallen Enchantress we wanted to focus on exploring the world outside your kingdom's borders. The world isn't empty and waiting to be settled, it is dangerous and needs to be conquered. There are unique locations with their own history and guardians; monsters settled in their lairs and vast wild land areas that offer their own challenges and rewards. There will be areas the player would do well to avoid for most of the game until he builds an army that is able to conquer them. Fallen Enchantress brings the world of Elemental alive. Don't expect many of your scouts to return, but those that are daring, lucky or strong enough to survive will be rewarded for their journey.That part in the description about "significant changes to the existing game" begs the question of what happens to those who pick up Elemental now--when they'd have to pay for the expansion--and decide they simply prefer to play the core game alone. However that works out, the massive 1.1 patch launched in December made good on the developer's promises to fix the game. Shacknews contacted Stardock for clarification but have not received a reply at the time of publication.