There are definitely some plans for what will happen once the diplomatic restrictions get lifted. Whether or not that can rejuvenate the island and attract people back remains to be seen. I have my doubts. There may not be enough nobles left..
Note that I am not "blaming" Arcaea for what has happened. Just making an observation that the Far East is a ghost town. 69 regions for 97 nobles. If every region had a lord, then there would be barely enough nobles for each city/stronghold/townsland to have one knight each, with practically nothing left over for the other regions.
Pretty much the same situation as Beluaterra.