Going "townless" would eliminate like 1/2 of the content of the game from being available.. There'd be no construction opportunities, about 1/10th of the quests, etc...
If they can't viably make dueling optional, maybe they could make " Sanctuary" Towns, where members cannot duel, or be dueled.. so the aspects of the game they enjoy are still available...
You can call it what you want, but IMO the people instigating the duels are the cowards... case in point: I was dueled this morning by someone 40 levels higher than me (47 dueling levels) while i was in my fishing clothes and he was full set upgraded Vaquero gear... I claim he's the coward, having to duel someone max levels lower in working gear, that's obviously not a dueler...
If duelers want to prove themselves, they should fight other duelers in their skill sets...
If i kick the dog because he's laying on the floor, what does that prove? Other than the fact that I'm 5 feet taller than him and outweigh him by 200 pounds, all it proves is that I'm a bully and a coward, picking on those smaller and weaker than myself... If i give the dog the option of moving out of the way, or being kicked, and the dog moves, does that make the dog a coward?
As i've said before, dueling is only 1 aspect of this game, and INNO should cater to everybody's style of play, and make everything optional, dueling included... Maybe more people would stay, and potentially spend real $$, if their game $$, energy, and time wasn't being constantly taken by cowards...