Reducing the number of regions won't increase region/noble density over time because the problem is not that there are too many regions. The problem is that being a lowly knight without a lordship is boring. Knights have nothing to do!
I'm sorry, but this just doesn't make any sense.
Sure, you may find being a knight boring. But there's more to do as a knight now than there has been at any other time in BattleMaster's history, including the peak of our growth around six years ago.
That said, I do want to make all aspects of the game, especially being a knight, more interesting and fun. The way I'm planning to do that right now is to make war more prevalent and less frustrating.