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:O that concept art, just wow
I think it is pronounced depending entirely on your pronunciation of au. So for where I come from, the au in Dauphin would sound like the au in Smaug. And the au in Smaug (according to Wikipedia) is pronounced like the 'ou' in 'pout'. Again, it depends entirely on where you come from, each accent will make each word sound different. Pronounce it how you think it should be pronounced, there is no right or wrong answer here
I'm not sure if you've already answered this, but will this be populated? When I play some games similar to what this is going to look like, i.e. Oblivion and Skyrim, I find that it's really sparse, and cities don't seem much like cities. What will settlements and stuff like that be like?