I just want to start off by saying it is a very well written post and I love the discussion this has created both on discord and here on the forums. Having everyone talking and throwing ideas in the hat is awesome and very healthy for the server.
The main point to your argument was as follows:
I'd like to focus the discussion on this for now because it affects how Loka is designed going forward. Up to now Loka has almost had the opposite view to this statement when it comes to design. We are very wary of 'win more' mechanics and getting a reward that helps the thing you have done the best in, often allows you to snowball. This quickly reaches a point where others feel they can no longer beat you in that area because you have so many advantages. This is the very reason we have tried to make capital policies and buffs not effect conquest in a major way. (i.e not providing them better modules or faster respawn times) It's also why we have made xp and consequently 'god gear' relatively easy to obtain. It gives new towns/players a chance to compete against established towns by removing one of the barriers to entry, gear.
The buffs I am most concerned about are those that directly impact conquest and that are also on a very high power level. Things such as gaining an economic advantage through taxes or double dock blocks are fine imo, but there does reach a point (and maybe double mob drops is it) where the power level is so high it becomes a problematic 'win more' mechanic.
Equally you have to balance this with making the incentives for winning in a given area impactful and exciting enough to encourage players to strive for. So it's a tricky thing to balance.
Bonus question: How do you feel about perks such as the fishing one as a capital or world capital policy?