1) I'm not sure what "new lands" you're expecting to be created for this.
2) It will be done when the dev team has time to make sure it's done right. I could just turn off continents tomorrow—blip! Like flicking a switch! But that wouldn't give proper warning, or allow for people to emigrate their characters, or any of the important things that turn sinking a continent from a disaster into merely a stressful event.
1) If I am not mistaken, there are uninhabited lands on EC. Perhaps those?
2) LOL. We know you have the power. That wasn't the point. Will you use this power anytime soon? I haven't any doubt that it will be a very stressful situation if not a disaster even with warnings. But in not doing it...