Because I proposed them, I'll address some of your concerns.
The idea is to limit expansion. Apart from the territories you claim at the start, you can no longer claim any more unless you go to war (I think there should be a way to peacefully incorporate them too, but it won't be as easy as saying "I claim such and such"). It also get rid of the "expansion in war-time" issue, where players just keep expanding into white territories (unclaimed) and dragging the war on and on.
That depends on what sort of game and what sort of background story we choose to have, though when I proposed it I envisioned something like early 1900s European country tech level.
I am glad you see the light.
Yes, that's the idea.
Say, Zack, what do you think about using the HoI2 map?
Not really. The IOT world is assumed to be similar to today's world, so not everyone start at the same level of development. At the moment, the level of development of a country does not effect combat, so it's not much of an issue. However, it is if we want to expand the economy and the trade system, or rework the combat system.
2. no. NPCs are a pain. and it would feel crowded. really really crowded.
The idea is to limit expansion. Apart from the territories you claim at the start, you can no longer claim any more unless you go to war (I think there should be a way to peacefully incorporate them too, but it won't be as easy as saying "I claim such and such"). It also get rid of the "expansion in war-time" issue, where players just keep expanding into white territories (unclaimed) and dragging the war on and on.
3. what level of development? United states first world? Soviet union second world? India third world?
That depends on what sort of game and what sort of background story we choose to have, though when I proposed it I envisioned something like early 1900s European country tech level.
No, that map is fine.Some areas are fine, but the areas with the tiny provinces need to be consolidated. YES
I am glad you see the light.

Say, Zack, what do you think about using the HoI2 map?
Isn't this how it already works?
Not really. The IOT world is assumed to be similar to today's world, so not everyone start at the same level of development. At the moment, the level of development of a country does not effect combat, so it's not much of an issue. However, it is if we want to expand the economy and the trade system, or rework the combat system.