I still don't understand how this is supposed to work.
What does it mean to "own" land? Can nobody go there? Can you go but be kicked out? Can you go there but not build? Can you conquere others land?
All the popular places will fill up really fast, leaving new players with no area they are interested in. If it can be conquered, for people not having much time its pointless, you will be conquered in no time. If you can be kicked out, its nothing but annoying, there you are strolling along looking at the awesome scenery, and boom, owner throws you out.
Whats the concept here, what can you do with land you own? And what can you not do in land you do not own?
If I had to guess I'd say probably "ownership" of land will mean that you can only build on your own land and that others cannot build on your land (at least without permissions... rights... etc to do so) I think anyone can freely travel or visit to anywhere, but you cannot build on land that is owned by someone else.
I don't think the sim will handle the forcible takeover of someone else's land... You can't fight wars to take over land. The grid system doesn't work that way, anyway. If the concept of "fighting" is incorporated then so will the concept of "weapons"... What if someone had a couple of SLBM in a silent sub off the coast somewhere and retaliated with a thermonuclear strike? All it takes is one rogue player to knock out entire cities.
"All the popular places will fill up really fast, leaving new players with no area they are interested in. "
- actually I don't think this will ever happen. The earth is VERY BIG. In real life we have close to 7 billion population. I doubt all 7 billion people will be playing on Outerra, especially given that most people still don't have access to electricity. Probably less than 0.1% of the population has access to the hardware required to run Outerra. Think about the game GTAIV and Liberty city... It seems like a big world but it is actually very small! Sames goes for WoW, 2nd Life, etc... None of these games have ever simulated an ENTIRE EARTH to SCALE before. So we have the concept of "land will get filled quickly".. but that's only because we've always played in miniature cities in the games and never a to scale world.
Even when everyone wants to get to the most popular places in the world, there will still be no "overcrowding" simply because the land is WAY too vast... I think if anything, people will complain about land being too vast, players being too few, and that its hard to find anyone to come into contact with.