I can tell you put a lot of thought into this, and I respect you for that, but I personally would rather just have a housing system. This idea sounds like it would be fun, but really only for the people who own the towns. Thinking in a utilitarian way, they would make more people happy by allowing many the ability to have and customize a house, as opposed to letting a few (the richest) have a town. I envision the house as a smallish space, kinda like father frost's instance. Add some plat bought items to decorate or show off, many players may buy these things, and they'll make plenty of money off it.