No, this isn't a cool idea for something a person can do in the sever. This is a issue.
I lived in a non registered collection of houses a while ago. I was there first, with my hill house. Then my friends kingkirby101 and songhead came and built a walled collection of houses, with roads, farms, and a gate. Then griefs began happening. First my farm, then my hill house(It was for sale for only 2000!) then it began to happen more and more. Then everyone moved out.(I know songhead and kingkirby101 moved to some swamp) and now, it's a bunch of cobble stone walls in the middle of the wilderness(the greifers don't know that yet)
In fact, you can see this town by typing /home thedude114 and going away from the fence and towards buildings that are opposite of my house.
Also, is this a common issue? Or just this township? Anyways, this a effect of the greifer issue.