This is a PvP server "not stand on the boarder of a town and keep gatehopping so you can't be killed" server.
I own this server, flavio is one of my staff members. I've done L2 servers since c1 PTS, both on L2OFF and L2J. I KNOW about gate hoppers more than most people can even imagine. I've delt with it with GM powers and without. It's a huge annoyance and I know a LOT of players hate it. Hell, when I was one of the main admins on one server, some days it would get so bad I'd shut off the peace zones. Then those being little gate hopping cheaters wouldn't stand a chance and cry. If you don't know how to battle then don't. This is NOT a server for those that have no intention of fighting another player.
If you're talking about major lag because everyone is in one zone then you should hate EVERY server. EVERY server that doesn't even set a shopping area so to speak has giran become the major town of commerce. Servers with thousands of people lag like a nightmare because hundreds are sitting in giran town square for shoppers. There is no difference. While FI has the GM shop it doesn't have every last thing you'd ever need. Not to mention when the server goes faction, which will be happening soon, FI will become pointless. There will be two bases and outside of that, nothing more. Will there be a point to owning castles and forts I'm sure would be the next logical question. And the answer is yes. There will be things that even our primary shop won't provide. This still allows for a player economy to exist.
I am always open to suggestions which is why there is a feature request tracker in place. As for the server specs it self - I don't give those out. Why? Because it changes as the needs of the server change. When we become large enough, I'll update it to support more. Till I have to start clustering servers to make things work then we'll buy more servers. It's not difficult but it is difficult to keep all the ad threads up to date with current server specifications...