Wow, that's a bold wish, and I can tell you now it won't happen. It will one day be possible to build your own house, but you'll never be able to own your own village, since the villages in PS are set in the game settings. Also the pillage and burn thing, although fun, would cause countless problems.
Thanks for your suggestion though, no doubt there will be many things in PS's future, but this won't be one.
I would like to respectfully disagree. A stuborn group of players could build a village. Just build houses in close proximity to one another and presto bingo, village. Burning it down would be a different matter all together though. Same for the guards and traders.
And even if it was one day implemented, it would diminish the quality of the RPing we have come to expect from our players, because I doubt many people will think up a plausible RP reason to attack another village. It'll just be used as another tool to become elitist, which we don't really want.
What if I roleplay with a group of bandits intent on making coin regardless of loss of life. Yliakum does have its vilains and burning down a village should be a possibility for them. However I think it should be a privelege given only with GM support and with both sides informed OOCly. After all. What better way to raise interest in a good vilain then have him burn down something that other players took effort to build. I could see loads and loads of roleplay stemming from this. From support to the survivors to revenge against the vilains to bounty hunters taking after the coin on their heads.
Just my two units of currency.