Maybe they theorize that if you expand far enough, the problems with over-expansion go away. Kind of like if you starve enough, then the problems created by starvation go away. You'll be dead, but at least you won't have any more problems.
But really, does any realm have problems with over-expansion these days? Look at Sirion and Perdan on EC. They're just ridiculous...
Depends. If you are expanding into rural, not so much. If you are expanding into Cities and Townland when you only just manage to feed the regions you have, well sir you have a problem. It is not a problem of our making mind you, see my above comments about being perfect.
