It's hard to tell which form is best, probably "best" should be well defined, every village has its own goals.
Main issues are (for me) : security and recrutment. How to manage people so you won't be griefed and losing hq stuff if you make a mistake.
The bigger village usually have personnal bw plots, and very high q infrastructure brickwalled with restricted access. Majority of infrastructures are shared, but everyone makes his own curios / food / (life).
That's probably the most efficient way to lead and recrut lot of people with the minimum risks of being griefed. This system works the best in terms of "power" and size.
Smaller villages (like mine) can work differently : we're sharing everything (communism) with a strong "enlightened dictatorship" of the LS (

) - and also delegation of tasks (every member has his main tasks).
It works quite well and is really enjoyable way to play the game. There's a feeling of being part 100% in the village, involved in its life - which is less present in bw with personnal plots. Also it's very good that you can count as friends with everyone, and share / discuss about objectives, create group tasks etc...
But it needs time to create trust, and it's quite hard to recruit and keep people in such a system. We are very selective, maybe too much, but can't really do differently because of security. Sometimes we can feel like paranoids.
Also, every player is hard worker and has to fit in village system, which can be hard for lot of players. Many players have quit the village / the game.
Curios - and food to a lesser degree - probably are one of the most difficult production to handle in this system : people have to think and work for everybody. No "black sheep" can be allowed very long. It has to be controlled, so we can say that there's less liberty in player actions.
Also this organization is harder and harder to maintain as number of player grows.
About dictatorship, it can be hard to lead a village because you have to be "rude" and tell people what to do / not do, make sure everything goes the good way, and sometimes being very intrusive. For the sake of all, never trust anyone... until you are 100% sure they can be. Most difficult but rewarding is to get people feeling involved, so you can really trust them and delegate and let them do new projects. For this aspect game system is good with separation of powers between chief and LS. For me, LS should evolve from dictatorship to his "justice and law" role only, with a strong chieftain being the "day to day" man for other leading aspects.
About a second village we have tested one, called "nursery" but i think ladygoo is right, it doesn't work very well, even when u explain why new players don't like being 2n zone players and i can undestand it. I'm interested if someone have better system to test and form people (especially noobies) before recruting them, without making them quit from frustration / loneliness.
About my village, maybe it's original. I re-started alone after we got raided and i recruted very few people with a strong rule in mind : i prefer recruting nobody than someone i don't know / trust / can count on for good work. And with time the village slowly grew. So we're not "the best" or "the most powerful" but we have a decent strong village, good basis, relationships, and everybody is involved to make the village and quality rise - all of this with few people but "good" ones.
(sorry for my poor english... i wish i could explain better but lack vocabulary. This subject interests me a lot).