I don’t think that anyone can go out of Storybrooke into the Land Without Magic because the Evil Queen put up a barrier. They were definitely at the nuns home, not at the hospital. If Gideon is actually Morpheus then he is going to get a lot older in time for the next episode, so i think it makes more sense that he went somewhere else. Though, i sort of agree that they probably won’t show where the blue fairy took him and because he ages up so fast it won’t matter.
Honestly, i am still on the edge about whether or not i believe that Gideon and Morpheus are the same person. If the writers hadn’t said it explicitly, there is no way i would think it was true. Even if it is true, then Morpheus is being manipulated by someone, somehow.