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Pretty much expanded rufus's comment. Why make have tons of towns with generally not a lot to do in them, when you can have a lot of things to do in a smaller world then a bigger one.
What would you add to a new town that just got developed? a new tower and a hat shop? that doesn't seem much fun to me
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well as of currently there is not a ton of things to do in any one area, nor does it seem like we will be seeing so anytime soon...everything is spread out, you can bring new unique content along with a new town.
Its a win-wi
somewhat related: I still have hope for CTF, I say remove one of the useless buildings in Graal City and replace it with the CTF house and you might actually see people in there playing. It sure as hell isn't attracting anyone a trip to the isolated butthole of the map, that is North(way North) Graal, to play.
If I was just wandering around, like a lot of people do in Graal City, I might find myself walking in to play a round, but is anyone going to go all the way to North Graal to play because they're bored? No.
-Sorry I went off on a tangent here :p