Well, I would hazard a guess that people who are not flagged for pvp will be protected (true) but will not be able to conquer any territories around them either. So in a way, if you are a non-pvp fanatic (like me) you can still enjoy the terraforming/building/crafting aspect of the game and relax with a beer after a hard day at work and teaching my kid his homework. But also be in danger of being beaten and robbed every time I wander off my homestead.

I like this compromise.

Now if later a few players and I band together and decide that we would like, after all, to join the pvp fray because, darn it, we are too bored of building stuff then the option is there for us. I don't see what the problem with this would be.