The choices are three ports (maybe two, not sure about balmora, but anvil and riften are definitely ports), A medieval/fantasy fortress, a couple villages, and some wierd forest thingy.
This would be akin between the SC planets Korhal, Char, Aiur, Mar Sara, Tyrador, Castanar, and Tarsonis (pre-SC1)
Same variety, 3 core worlds (ports), a couple zerg infested worlds (villages), one random middle of nowhere planet (forest), and a world thats been glassed several times (the fortress).
Markarth..because unlike Ernie, I would enjoy the waterfalls at night
It really depends on how close you are to the waterfall. If you're a good quarter-mile away, it could be very soothing, but if you're any closer, you may have to invest in some earplugs. The picture made it look like you'd be living incredibly close to the waterfall, so your house would be extremely loud.
What I'm trying to say is, that waterfall would be extremely loud and incredibly close.