The issue is they made a way too big walking sim world that was supposed to hold "10k" (LOL) players. so instancign it and having way less people per world, especially when TC is in and people dont all live in town, will feel wicked dead.
They need to instance like haven, and make the world way smaller. But that would need a big map overhaul to cut out dead space between towns.
Regardless of what some players with way too much time on their hands think. Travel from point A to point B isnt fun 99% of the time. And if it was, the travel wasnt the fun part. They could easily half the distance between all towns and have no negative effects.
What happens when they want to leave town?
Ya this is the issue I see with the town instancing idea. Because it would be good. But it gives me MO1 tekton bridge vibes. Which had a ton of issues and was easy to camp. Towns would need like a safe zone gate area it spawns you at or something that cant be fully camped so you cant just spawn in next to a ton of reds.