AFAIK the split into conventional/base and extended memory
is largely a DOS concept.
It's of course based on the 8086 real mode being fundamentally limited to 1M and the 286 protected mode not being limited to that.
But if you divorce yourself from the DOS memory model, I don't think there's a fundamental need in protected mode to treat 0 to 640k (or <1M) differently from >1M, or for protected mode to have a concept of extended memory.
"One big block of 16-bit RAM" probably means the entire RAM (accessible in protected mode) addressed in 16-bit segments. If you wrote an OS that uses 286 protected mode and don't care about the DOS memory model, that's what you'd have, and there would be no need for distinguishing between "base" and "extended" memory once you've entered protected mode.
I'm not really that familiar with OS/2 so I don't know how exactly it handled the switch to real mode for the DOS session or what it did about keeping the rest of the memory separate from the <640k of the DOS session.
But in general the base vs. extended memory split is a DOS memory model thing.
Many PC BIOS implementations also reported base and extended memory separately in POST output for a long time but I think even that's just following conventions based on the DOS memory model.