Just reasoning things through (as somebody who has played old style worlds) I think that the fake limit is intended to balance out the fact that sniping is not possible. Back in the day the settings were very much to the advantage of offensive players, because they could (and still can) rebuild quicker. Because there is no morale this means that a larger offensive player can bash a smaller defensive one seven days a week if they want, and then take the village when the smaller guy gives up in despair. I guess the fake limit is to reduce the amount of bashing?
Also, I assume the flags will not be available? (I did read the settings, just can't remember seeing anything about them.... sorry if I'm just blind
)
Edit: I looked again and I guess I'm just plain blind
No flags