Hah! I knew you are a thinking man h3rb1! Agree, this was one of my 3 original ‘compromise’ suggestion ideas. Well said. I myself had three which I was going to offer up:
1) Add slider to adjust NPC landclaim radius. Basically what you have already suggested. The premise it that we as Singleplayers & Server Admins could increase or decrease the landclaim size (ie-no build zone) on npc camps/structures. Same princple as player owned structures.
2) Transform ‘fewer building restrictions’ console command into an Admin setting. This is a console command for PCs, which allows players to place up to 100 additional building pieces within no build zones. But sadly we do not yet have this valuable option on consoles.
3) Add an admin setting to ‘disable building restrictions’. Not certain if this is technically feisable or not, but I previously suggested that we could add an Admin setting to toggle the building restrictions on and off.