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Same reason mod town was added, same reason york was added, I guess.
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York town was added to bring fun and exciting new content to the game. There were quests, a horse race event, shops, and a fort.
Mod town was added to add new exciting content to the game. North Graal City served no real purpose before it, and mod town had so much awesome stuff. A quest line, bug catching, a fort, shops, balloons, and more.
All this update did was ruin an existing system. It's so confusing now to tell whos your guild members/friends. I turned on indicators, but whenever there is more than 2 or 3 indicators on screen like at a fort I start getting uncontrollable lag. I'm on an iPod 4.