Theft and combat are broken right now. Fixes are just pissing people off. Players hate the theft mechanic anyways, and think no one should steal ever. Thieves will only use alt accounts because ranging is broken. Alt storage makes items both unstealable and unrecoverable.
Remove theft and PvP from the game until they're properly fixed, instead of throwing on stopgaps that may or may not work -- walls are stronger, so what if someone steals from a village that didn't finish building their walls or something? Then the same problem as before happens. Or what if someone steals from an unprotected claim and robs them blind and puts all the items on alts? Same problem as before.
Just turn them off "for now", and let this game become Eating Things Online.