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Menethil's Gift is ground that was 'blessed' by the Lich King. It is the Scourge-equivalent of holy ground.
It was the site where Ras Frostwhisper committed suicide and was raised as a Lich. Interestingly, Leonid Barthalomew the Revered, in describing the ceremony, implies that the Lich King was corporally present in Stratholme: "The Lich King stood over the fallen mage..." This would seem to imply that the Lich King has at some point visited Lordaeron following his joining with Arthas Menethil, or perhaps that Arthas' past actions are being attributed to the Lich King, for they now are one.