Blocking off areas will be a nut to crack. Bagballs etc can be used to block large areas around the shrines as well as limiting the recall chances to the area. Perhaps ultra fast decay of items in the nearby area is one method to handle this.
We are looking at providing a solution to this by centering battles in a mirrored area of the shrine....something along the lines of you go to a shrine, then head to the battleground area. This allows us to both deal with housing in the area that could complicate things, as well as provide different areas for battle with varying landscapes and other natural features...which of course makes for a more fun fighting experience.
Thanks for the feedback!