Administration is important, I think, to keeping the game balanced. Without Administration settlements can have unbounded growth. This throws off the balance of the rest of the game, combat especially. The goal is to force a quality-over-quantity approach.
That being said, there will be higher level admin centers added in the future, which will have even more Administration. The Nobles Update will also add more tools for increasing Administration, but at the cost of needing to funnel more resources into a single city. I'd like large cities to be possible, but only when supported by an entire empire.
- Small regions reduce the need for more Administration, which would work against my game design goals.
- The next update (Battles and Boats) will add Bronze, which will unlock another level of upgrade for the administration center, with a significant increase in administration.
- Yep, see above
- This already exists, check out the Tyranny Mod. It adds structures that increase Administration.