It doesn't follow that only advanced factions would be able to survive further out. It also doesn't follow that advanced factions would even want to live there.
Besides, there is a limit to human sanity and making a base in an area where it takes you 8 minutes to chop a tree or where a badger can kill you is out of the question for most people. Those regions weren't suggested so much as places to stay but rather as regions developed characters could go to to collect resources, hunt rare or hq animals, or simply explore. It's a continuous source of challenge.
1: roads could be disabled there, or they could require an amount of charisma proportional to the distance-difficulty value of the region.
2: so?
3: it wouldn't really be any different from our current experience, and it definitely wouldn't be worse than the result of w8's spawn system. The central map could simply be of the same size as the one we have today, the scaled region being additions placed where its borders would be.
4: for whom? I think the only reason people stopped making caravan threads is because now the map is too small for that. Exploration is quite fun for a lot of players.
I think this idea not only fits the current mechanics but also provides more content for a variety of playstyes and more opportunities for competition, with the boon of making people leave their walls. This suggestion came up in a thread where loftar was saying he wanted to make exploration more challenging and fun, and that his ultimate goal was to make the map theoretically infinite without allowing players to scatter too far from each other.
The scaled difficulty suggestion was the response to that, since it 1) makes exploration challenging regardless of how developed one is (and maybe also fun, depending on how its implemented), and 2) prevents people from hiding or staying too far out.