cool!
:thumb: Really nice alternative plans there! One thing the LL and other small plans do is try to cram a lot in because, well, we want a bunch of stuff on our layout! However, your focus is good -- Big operation in small space.
I do miss the winding travel that was part of the LL, as well as that cool yard design, but you created some great alternatives!
Well, I do have just a couple suggestions, for a bit more operation. Perhaps I'll number your trackplan and repost it...
First, where the 3 way switch is... instead of leading to a switch, what about having a cross over, leading to a a log dump to that cool little pond you have there? I've always had a soft spot for cool and creative trackage, and I liked the LL for the cross over that was in the yard. So, you could cross over there, and have something that paralells the track, going out onto a logdump that is on a trestle of some sort (I'll try to find a pic of this... I've seen it before...) I should probably mark up your layout and post it, the more I think about it.
The advantage of this is that you could make the parallel track to the mill a loading area for either rough cut timber that will be shipped to other mills, or really anything.... Different kinds of flats with different types of loads, etc. That way, you can increase the number of interesting looking rolling stock on your layout.
Second, in conjunction with this, what about an interchange of some sort? Probably on the opposite side of the mill, could even share a common tunnel or something. That way, you have an entrance and exit from the layout. Somewhere for all that wood to go. Somewhere that supplies, etc. would come in. I guess you could use that tunnel just before the switchbacks, which is interesting. Just a thought.
Third, If you put the mill flush with the backdrop, like the first plan, you will be able to have a bit more operating space. I do like the track of the second better, but there's that big 'dead' spot, that would be great for the sawmill and a big pond or something. You could have a longer trestle on the main track and making something like coming across a bay or lake.
Re: canyons: the book how to build a model railroad with personality (I think that's the title) has a whole section on building a big Canyon. He does this on one end of the layout, and it's quite striking.