All I need for a spot to be viable in a crowded world that can be fenced is access to water and junk in my homestead safe zone. Guess what? All of those are going to be snatched up by tribes, tribe alts, tribal groups split off to claim more land for their tribes in completely unfair but mechanically permissible ways.
A homesteader will have to not only find such a place, but will have to log in and beat all of 5 tribe members to it when the time comes to place a totem.
Good luck with that.
Even if the homesteader is lucky enough to succeed, they then can't leave their area for fear of being fenced out of it, and can't leave their area and walk within the fencing without being killable by invulnerable tribe members from the surrounding tribes.
That's not viable.