Houses left in the open will decay very fast if not maintained. Players who log out and never come back will have their land claim removed after a time.
So it does address the left over new player shack syndrome.
There is one Server atm with a Central City in the middle.
I made a post here with a lot of info and easy to use links to it about the game from the site.
life-is-feudal-links-to-articles-on-game-features-and-info-t787/If you search the forums you will find more info as well directly from the Developer
Bobik who is here frequently answering questions and posting information about the game in the FAQ and other posts.