MDonley, you are correct. They pretty much "carved" VWL out of an existing area of woods.
If you have a room overlooking the quiet pool, you can get a partial view of the lake through the trees.
Here's a picture from the Bay Lake side where you can see a little of the quiet pool....the rooms at the end nearest WL are the ones being discussed.
<img src= "http://www.disneypix.com/2000ft/Roll4/Roll04_006.jpg" width=500>