who actually needs more land?

Depends on whether the hardware can support it. On my iPad Mini, buildings near the edge of the field of view routinely disappear; it's more than it can handle. To populate more land, there would need to be an increased item count limit, which eats up more memory than certain (older) devices may have.

Personally, I'd first prefer to see better security. I've read accounts on here of people showing up in others' towns, selling everything that isn't nailed down and eating all their donuts. With the Nuke feature, completely trashing someone else's carefully-constructed Springfield would be easier than ever. I do NOT want to see that happen again.