I don't think its quite that bad actually. Even so this is frontier people don't have to give everyone such a wide space like they have been doing
There's a ton of empty space between folks.
Looking at the map I think there is actually an ideal area for it just across the ocean from spawn to the east. Shown in this picture:
Imageshack - snowwo.png
The snow biome extends into the ocean there, and there is also a nice shallow bay that could be mined and restocked quite easily I think. Once the water is replaced itd be like you were never there if your worried about maybe someone building there in the near future.