Craftland.org

Basically a Kingdom/Country would be a large area of land With a wall as the border.
After the land has become a region you could enable an option called "Country".
It wouldn't be Very much like factions.
After the Country was enabled n the Options of that region
you could make a block that summoned around 4 - 10 NPC's
You could assign them jobs like "Building" and "Farming" or "Mining".
Eventually you would have enough Civilians you could make a military and Have wars with other country's.

Tell nick to look at this. Maybe he could do something like this with the town system he's working on.

I fully support this idea, it should definitely be considered.

I will get a workable version of towns when the basics down and I will try to get a few people on my test server and get them to help me narrow down more of the specifics.