No it's a punishment for logging in every turn just to sit on your titles. There's a reason people lose titles after a certain period of inactivity. Logging in now and then to keep your title but doing nothing isn't playing at your own pace, it's not playing at all.
It's a punishment for anyone who doesn't leave the region on a regular basis. Which includes people who only log in occasionally. Therefore this is a punishment for people who only log in occasionally. Whether you intend it that way or not, that's what you've done.
In addition, you have equated "not moving from one region" with "not generating fun for everyone else". These two things are not necessarily related.
The siege system sounds a little complicated. I can't recall the last time any region was besieged for more then a week. Players can compensate by performing police actions during the siege.
It's way to complex, hard to understand, and bug-prone. No way anything like that will ever get implemented. We want the game to be simpler and easier to understand, not more opaque, complex, and full of hidden penalties.
In fact, this entire idea is never going to get implemented in any form.
