I think a lot of people in this thread are forgetting that the OP said (paraphrasing) "It's not N'Zoth himself, just a representation." Why he would be manifesting an avatar of himself in Deepholm is anyone's guess.
Personally I don't see it very clearly, even with the Paint markups, but I'm not a great abstract thinker. Clouds just look like clouds to me.
- - - Updated - - -
Yeah, calling that a "circle" isn't even a reach. It's just ramrodding a theory into a picture.