Sounds like a good idea for a game! Good luck with it!
I do have an idea about the PvP, though. Maybe, if someone wants to do PvP with you, then it can come up as a request. You can either accept it, or deny it. If you don't want to be flooded with requests, however, you can choose to disable it, and other people won't be able to send PvP requests to your character. But if you decide that you want PvP again, then you can choose to enable it for your character, and then people will be able to send you PvP requests again. That way, people won't abuse it so much like they do in Lif, for example.
Another idea is that, if you don't want to be in the city so much, then there can be some wooded areas. I know I wouldn't want to be in a completely treeless area. Or, if you go beyond the boundaries of the city, then you will eventually be in the wilderness.
Yess, that sounds like a good idea! And as of now, I'm going to be working on the wooded area for mapping since I was thinking of that also. I might even add in a chance for users to move between towns and cities and maybe add some country side.