All I know is, I want to fight the compilation of the 7 evils. Diablo did not fit the bill, I expected to fight all the prime evils when fighting diablo in his shadow realm. So yeah, either all 7 bosses in a row with No TPing in between and each one restores NV, or some 7 headed beast like another poster mentioned.
As for setting, I also agree with the coastal area being a great idea. The soulstone would have been absorbed by some other being or it would form a beast on its own.
It could be hell on earth, with meteors falling from the sky onto the sandy beach. You continue and eventually enter some kind of cave with an underground lake system. The water would eventually be replaced by lava the closer you approached the prime evil. Then you fight the series of bosses on differing plateaus hundreds of feet above lava.
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I think that its going to be Westmarch, or a comparable large city scape. Think Gondor from Lord of the Rings, or King's Landing from Game of Thrones. Street by street fighting, open plazas (similar to Caldeum's small town area), temples, parks, docks, etc.