oh, I like it! specially that poetic moment when you find out that you are all alone. waiting for someone is nice. no, seriously, I think the idea is great. in general, I like the idea of using internet to bring closer people who are already geographically close, so they actually have a decent chance to share something outside the screen. a chat might be the most dangerous way to do this, but anyway, still cool.
a "simple" idea to dynamically adjust areas, if you aren't doing it already, at least for lonely people, is setting a timer and progressively expand/reduce the "here" area, up to a more generous limit? (basically, automatic population density control, in an evil way)