Guess what: until the playerbase increases significantly, they have no hope for knights.
So the solution is to put everyone in cities and make margraves the all powerful force in the realm? They'll have all the gold and all the knights.
That is a step in the wrong direction no matter how you put it, no matter how many players we have.
And if we balanced the game for the playerbase we want, instead of the playerbase we have, we would soon find that we're going even further in the wrong direction.
The point is, the current region values are much better than what you're trying to push through. What problem exactly are these new numbers trying to solve? What, exactly, is broken? How is this going to make the game more fun compared to the current situation?