It should be anarchy outside the walls of the village.
If block protection is on, it will prevent:
faction warfare (to an extent, the other party would have to "agree". otherwise a douche could just continuously piss you off but he has to agree to go to war with you) (plus you can't even destroy their main city)
the removal of kebab and other unworthies.
and it just turns the server into a giant carebear PvE singleplayer game where you can talk to ECers instead of actually roleplay and form alliances and fight other people if you so choose.
I say just block protect the main village where everyone builds their home/spawns and then its anarchy outside the walls.
Second question added because I hate Venom. Please vote vote accordingly.
Thanks for giving democracy a chance :V