I fail to see how EQnext's "Dark Elves have taken over everything on server X" is truly different from any of Guild Wars 2's Dynamic Events, but on a somewhat grander scale, and less frequent.
They are still "states of the World" or switches that can be toggled by the player-base. The moment any of these changes is truly permanent, you are looking at needing a huge Live team in order to create new content so that entirely different "states" can emerge. Else it was just a one time event, like they had in Asherons Call. Which was cool, mind you, but costly, and with the usual drawbacks, like people missing out on the events, and other people longing for the "states" that existed before the event(but will never return).
John: "Hey, how's life on the Antonius Bayle server? Still Dark Elf rule and an abandoned Felwithe in ruins?"
Bill: "Yep, but we are working to get it back to High Elf rule so we can shop again in Felwithe."
I can only see a limited amount of outcomes with this system; you are looking at either constant content-creation + severe monitoring, or things run completely unchecked into extremes, with ridiculous outcomes and exploits abound.
To be honest, I thought a_skeleton_02 "storytime" about how a group of Orcs can differ in behaviour after respawn was a more interesting expression of how storybricks could work out.