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The Corrupted Ashbringer is a reference to the legendary sword of the same name in World of Warcraft.
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It is intended to be a secret area, similar to the Secret Cow Level in Diablo II, however unlike the Cow level, it is hard to make a huge profit from the items and gold dropped. It was likely put in as a joke, because many people felt that Diablo III's early graphics were too bright and cartoony.
There is a random chance for a unicorn to spawn with one of these names: "Rainbow Western," "Midnight Sparkle," "Nightmarity" and "Nightmare is Magic," each of these are references to the show My Little Pony: Friendship is Magics characters names.
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