Well....
We devs have been in discussion and as I've mentioned to some players already, some bigger changes are coming between now and the end of the year. However, not everything is quite able to be announced as limited volunteer time means being careful about what we commit to.
But I can share that we do intend to adjust Dwilight's monsters to be more based upon noble to region density. And for character limits to be changed. And for large realm penalties to be improved and additional ones added. Relevant announcements in more detail for these and others will be forthcoming at the appropriate times, but this should whet your appetite for now. There are still some server move issues we must handle first.
We'd love to have a more dynamic region count like you describe, but a) it would essentially require closing or reworking all current continents, and b) everyone on the frontier of that sole continent would have to bear in mind that they would be in constant danger of being overwhelmed if the density drops, while those in the core would be insulated, creating a potentially serious balance issue with only one continent available to the player. Not the best player experience, especially for the additional work input.