Wasn't one of the main ideas behind Dwilight that density would always be low and that the map would never be fully conquerable?
Not really. If it's "never fully conquerable", then once you cut off the "unconquerable" part, all you really have is a smaller map that
is fully conquerable.
No, Dwilight was just another new continent, that happened to be quite large, and thus take a lot of nobles to fully conquer. It went through a "frontier" period like every other new continent, but that's not inherent to the island. The only "main idea" behind Dwilight that was ever intended to remain fixed is SMA.