Correct me if I'm wrong, but it sounds like there will be large chunks of land handed off to nations and different people who are fast enough (or 'more qualified') to claim them. Eventually, all of the large chunks of land will be gone and in order to get a small home, you would have to go to a leader of a large piece of land. If, however, your character is generally disliked by many people, it seems like it would be difficult to get land from any nation leader or owner of land. In fact, the reason many people get small homes in the middle of nowhere is because they don't want to be associated with nations or large towns. Granted, this is all hypothetical, but it seems like many players will be kicked out by large land owners or will be unable to obtain land because they don't want to be associated with any leader, nation or otherwise.