A statement from the Dwarven Lords...

I think it is a great idea. Everyone seems to think that Illy is getting 'too crowded' for the ten square rule to apply. What they are not noticing, is that every few weeks the Devs run a purge and viola! We have space! No there will never be as much land as there was a year ago, but as I said to someone recently, we are not to the point where we should be fighting over a few squares. ITG follows the ten square rule, with settlement within ten squares only at the approval of the nearest city's owner.
It is very aggravating when others don't show the same courtesy and we end up crowded. Because we are a training alliance, we do not allow retaliation by our members and our officers will not take retaliation, to avoid others taking anything out on our newbs. If we are pressed we aren't without our allies, but to declare war on someone because they are thoughtless and inconsiderate is not something we will do. Karma will come round :)

This seems consistent with the evolving practice in Illy, although I would suggest at least contacting the hapless player who has moved or settled and negotiating with them before removing them with extreme prejudice.  Some people don't read the forum, some people accidentally unclick encampments and don't see cities, that sort of thing.  Ignorance is an excuse and stupidity isn't, but neither is necessarily representative of ill will.  

Thank you Belargyle.  Tenarils and exodus use the measured distance so it is crystal clear now.

So why so much land when you have a current usage of 4.28 sqs per city?  It makes 314 sqs per city seem like a lot.

You will, of course, reciprocate this policy to all other palyers - meaning Dlords will not be settling within 10 sqs of other players, and all the other terms you have pronounced for Dlord.