I absolutely love this idea, mainly because in my opinion, its the grind that people will only do for so long. I speak for many of the more roleplay based people who wish to just be a character apart of larger setting and not have to get on everyday to keep up a virtual job and grind. Back when I was a GM, I thought up a similar idea for an iteration that featured a grand city that was the spawn point but also the main location for most of the events.
The lay out itself was just a simple design that I mainly drew inspiration from Legend of Zelda: Twilight Princess as featured in this video:
The whole idea that I had was basically, for the first time ever, players would get to experience life in Highkeep, one of the great noble cities on the continent of Arendor. The backstory would briefly explain that for many years, the country and lands surrounding the city were ravished by a plague, war or bandit raids which explains why there is an absence in population. However, life is once again prosperous for the region surrounding Highkeep and thus an influx of newcomers and those returning to the city who emigrated out many years ago.
The city would feature many GM / player run factions like an organized city guard like the one we had in Valendar's town port. As well as a return of many other factions such as the Merchan'ts Guild, Thieves Guild, etc who all exist within the city:
Obviously a lot of this sounds far fetched and without a considerable amount of help from the team in terms of getting certain amount of things already built and brought into the game, much of this cannot be possible. I'm sure much of the community would definitely be interested to see something like this as its something a lot of guilds end up working towards anyhow, but never end up achieving because the grind takes too long to reach a point like this.
Anyways, that's my take on things. Maybe it's way too unrealistic, but I think with enough determination from players and staff, this could definitely happen and change the dynamic of how we play Life is Feudal as a whole.