It sounds like people are very interested in hearing what's planned for Paxia, so I'll offer a few insights into my current plans. Note that these are subject to change at any time.
The biggest change is I would like to use the war zone counters to enhance the experience. As you accrue more victories, you gain access to better shops. If you spend your time attacking other clans or the other unaligned forces on the island, you'd get access to weapons, spells, and similar offensive items; if you spend your time defending your clan's base, you'd gain access to better or higher-level armors. But the clan equipment would only be useful if you're a member of that clan, and if you leave your clan you'd lose your counts, so it's not a decision to make lightly. Unity and Chaos would still be around, of course, but there might be other developments on the island as well.
We have a few other thoughts, and I'm obviously not going into detail, but that's the core of it.
Yes, everything would need a reset. With the magnitude of changes we'd be making, it's important to start with a level playing field. The different clan zones need equally-difficult monsters, so nobody ends up an unfair target because they're "easy to farm."
This also requires several high-level changes to the way the war zone counters work, so it's not actually possible right now. We're hoping to get some of those in soon, but there's really no way of knowing when they'll happen. On top of that, we would need things like armor and weapons for the clans that don't have them. It's the kind of release, in other words, that makes a class look like a normal week -- and that's saying something.