Honestly, I think that reverting the western continent of Dwilight to the monsters is going to have a much more negative effect than you think it will. You realize that most of the newer players that are starting to enjoy the game are in places like Asylon, Barca, and Nivemus, while the east is completely dominated by the old elite? Barca is pretty much the one thing keeping me in this game, and I've seen more roleplay going on in that realm than any other that I've been in for the past three years. Besides that, the way Dwilight was split into two continents is what made it special. In this way, you could be assured that one realm couldn't possibly control the politics of the whole island. Compare that to Atamara, East Island, or Far East Island. Atamara has the Caligan Empire, East Island has Perdan, Far East Island has Arcaea. The politics of those islands revolve entirely on those realms, which leads to rather boring, stagnant, linear diplomacy and wars.
Compare that to Dwilight. We have the war between Asylon, Nivemus, and the SA bloc that just finished, and at the same time, we had a war going on with Barca, D'Hara, and Fissoa facing off against Luria Nova. These wars were completely independent of each other, and both involved relatively equal sides. Tell me the last time you saw that? On Atamara, the CE, if it so chose, could intervene in any conflict with relative ease. The same with Perdan or Arcaea. If we were to take away one of Dwilight's continents, what do you think would happen? It would just become another Atamara.