Mister Fandango wrote:
You have to remember that the curse is a result of Rumpelstiltskin's magic. He tailored every aspect of it, so if you're going to puzzle out why this area of the kingdom survived, it's him you have to look at, not Regina or Cora.
The thing is, though, that it doesn't seem to have gone entirely as planned. After the curse was broken, he was not aware that he wouldn't be able to leave town.