My question is are we going to update the map come 1.9 or are we going to do some for of a reset again
We specifically chose continents and islands so that, in the event of future releases, we can always just add a new continent for people to settle on. That continent will contain new blocks, items, etc. I expect a new continent after 1.9 will be quite the land grab!
Wait so if emerald ore can only be found in the northern continent, what will the towns run on?
something different from emeralds, or just emeralds (but it just being harder too find)
Correct, towns (and territories) will run off a unique item called Power Shards (Prismarine Shards).