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It's not a "dead end," it's a place where a hero can enter, and small units can enter as well, but large units cannot – that's why the word "dead end" is used. And what you're talking about is not a "dead end" at all; it's a natural obstacle that prevents the enemy from swarming you.
Therefore, a "dead end" or a semi-open one is FORBIDDEN. A completely closed one is also forbidden. All other obstructions are allowed. Personally, I think that's clearer. The others probably think so too.
Yes, you understood everything correctly here; it's "just a play on words," although if, for example,
you enter a tunnel that ends at the edge of the map and use your units
to block the entrance and slowly reinforce them during the battle, say by raising skeletons or summoning elementals, then it practically turns out that the Hero will be sitting in a "dead end" :D, and the monsters
will be dancing around the obstructions :)
So, how did you manage to defeat the Nomads?