I had been under the impression that the claiming rules were different than I had thought. I took a look at them again and realized that all I need is a locked chest. I will get it established asap.
So do I Mainly because there was nothing wrong with the system (aside from probably being too complicated), but with the way certain people interpreted it.
I'm presuming though that once the main settlement grows to be like a district of the LLO, more will be created. And once that area is filled up, I'm presuming someones going to build a town on a different SMP, or really far away if theres no land left that they want.