Yes, and as a server admin on two popular servers I can tell you why. First thing that brings down a server fast is large groups. They hoard large resource areas, control air drops, and build large structures that within a few days will take 50+ c4 to blow into. Other large groups can compete but eventually 1-2 will take over. Once they take over, others will leave. After a slight population drop that group will leave too. Hence making a server full of large structures and no players. New players log onto the server see the buildings, get discouraged, and leave. Most players look for fresh wipe servers to play on after leaving another server, hard to get a good start on a server when full kev m4 groups are running around. Also, when your server pushes past the 50k structures, it tends to lag a bit. A few hours without an admin online can quickly destroy a server too. Players will flip out if an aimbotter goes more than an hour without being banned. Large groups will leave the server quickly if someone isn't online for them to complain to. When the server owners who are use to 100+ players logs on for more then a day or two to a sub 30 population, he is going to wipe. Wipes always bring the population back, as much as people complain about them. Everyone wants to experience the startup phase. Most players reach kev within a day or two. Maybe some future updates can balance out longevity issues with the game, but this is not something that is caused by server owners.
I absolutely agree with everything you said and couldnt have said it better.
99% of the time someone with more stuff than you will set you back to 0 if he finds you. The first one to get full gear wins. Which is in most cases the largest group.
Having played 1 entire week on the same server and then just few hours on a new one I can honestly say the buildup phase is the most fun part about the game so far. It gets really boring when you have everything and 5 backups of it.
Another problem is the lack of "gardens" that offer a variety of all needed ressources.
Which is what makes me really skeptical of the procedural map generation. I doubt it will properly implement roads and towns...