For the sake of arguement, every active player in the world joins a server. Every player in the world has excellent connection, and the server has infinite memory so it works without problem for all users.

The server makes use of the entire 60,000,000 x 60,000,000 block area and everyone has their own spawn point somewhere within that area so no matter how many deaths, players are spread out evenly by default.

What is the result? Will people group up in towns and villages and work together? Or will it become a collapsing distopia of raids and griefing?

EDIT: I know the answer is pretty obvious but I have some faith in players eventually joining up and creating.

EDIT: Corrections