The War Steading serves as a large barracks for Goblin-town, where their soldiers and skirmishers gather and prepare for raids upon the villages to either side of the mountains. NOTE: I apologize for the lack of coordinates, but there's a great map of the area here.
The goblins themselves may not know all the ways, for the deepest passages extend far into the heart of the Misty Mountains, where dark and unseen terrors lie, and the goblins will not brave these passages unless driven or enraged. Few know the full extend of the depths of Goblin-town, and those who have experienced them most likely died therein as slaves to cruel goblin overseers.