I think that there should be a wars feature, and there is a /t wargrounds and the towns/nations can rally their allies and build tnt cannons, fortresses, the like, and then fight the enemy. Keep inventory is on, but you only get one life there. The winning town/nation gets some sort of spoils, such as ground/outposts the other town/nation has (although not much) or money from the other town/nation's bank.
I think the war feature is more so for faction based servers, if you are looking for PvP.
big big hax ™