Okay, let's see...
------------------------------------------------------------------------------------
"You will have more area, real area and the appearance of more area, if you make the mountain steeper and taller. You could start at the edge of the layout, go up steep, and 'blast out' the areas where the track is."
------------------------------------------------------------------------------------
...This is a great idea. This little logging area is already up on the "high line" of the layout, and as it is, the top of the hill is higher than line-of-sight already. However, I think that a steeper, "cliffier" slope would be a great idea. The logging area is already clinging to the edge of a cliff, as the ground lower than this area is steep. Thus, your cliffs continuing upward is a great idea...way better than some gentle slope.
Next...
------------------------------------------------------------------------------------
"This won't give you any more area for trees, since they grow straight regardless of grade, or for buildings, since you have to carve a flat spot for them. But it would look bigger and give you more area for scenery."
------------------------------------------------------------------------------------
...I'd think that regardless of slope angle, the trees will take up the same space. I do not plan to have any buildings on site, just a donkey and maybe a small shack or two. The premise is to be that the crew hops on the log train in the morning, goes over to the site which is not too far away, and comes home with the train.
And Finally...
------------------------------------------------------------------------------------
"Another thought is to place an unpowered track up high, where the pink is now, then you can set a crane, crew car, rollin stock, etc. up there. The end on the right should dissappear into the forest or a cave, so it appears to come up from the main line.
------------------------------------------------------------------------------------
...And come to think of it, this idea would be GREAT for forced perspective, don't you think?
Thanks for the great ideas! Can't wait to work on this!