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We've discussed this at times internally and there are a few concerns that would need to be worked through,
1) Readability - Especially for console players, most banners at the size shown in the mock would be unintelligible. Unless they're much larger, it will still mostly just be colors. This would also impact the compass, since it also needs to show a large enough icon.
2) Mentioned here - Uniform banner icon and background color choices by players. This is becoming less and less of an issue the more icons we introduce, but still collisions happen. I probably wouldn't solve this with more colors under the user's control, if we bothered to differentiate them, we'd probably do something like add a star for each duplicate around the outside or something?
3) Does this buy us anything besides giving the banners more play and will it in practice? When I put my marker down on a city, most of the time it's just immediately overlapped with everyone else's on m...
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