I think dividing territory size by 4 is a bad idea and will make the problem worse. Urban territories will still be highly competitive, but travelers (like me) will be able to consumer 3 or 4 times as many territories and the massive resource advantage that comes with it.
I still think the best solution is a resource cap. Right now I, and many other players, basically have an unending supply of resources which we use to maintain fiefdoms and intimidate smalls.
Another solution is allowing alliance leaders to manage the alliance's resources. I would rather have smaller players join me than destroy them, but right now it simply costs me too much.
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