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Actually only Jhelom is the only suitable replacements if they decide to do a replacement.However, since the Magincia sigil post has been removed from the faction bases on Test, it sounds as if the dev team have no plans to even try to go in the direction of substituting another city such as Jhelom or Nujelm or Cove.
Nujel'm isn't part of Britannia, never has been, it's an independent Island Nation. This is why there is no moongate Too Nujel'm only away.
Cove is too easily defended as a town, it doesn't even qualify for City status, it's entrances are a choke point, more so than any other city. How close houses can be placed to the City is a major downfall though...
Serpent's Hold has no Moongate access, it's not even a city, just a military stronghold.
Jhelom is possibly suitable, it has moongate access, it's expansive and there is plenty of room to maneuver in.
Ocllo would be my other pick if it was added to the moongate system it would be an excellent location for use. It's expansive, has wide open avenues of approach due to it's large coast line. The only downside to it is how close houses can be placed to the town... We don't want more House Fighting now do we?
I really don't see where 7 is a worse deal than 8....
7 towns should be easier to capture, and easier to defend than 8, what I do see though is people complaining about how long it takes to capture and defend all 8 sigil. I see this on a regular basis, then again on many shard I don't see many people caring about the towns one way or the other to start with...