That's not a million miles away from how Second Life operated (and still does). Where the 'Land' & 'Estates' (and parcels within them) were servers. Each has their own limitations to how many user avatars they can support at one time.

People flock to places they identity with. Buy parcels. Build their own space and communities within communities.

As far as 'voting' and governance goes, I think there's room for development with blockchain login/identity/ownership and Decentralised Autonomous Organisations (DAOs) which support that.