Yes the main objective is to punish the limited space walling far more than anything else.
Changes I could see coming about would be: more layering, more strategic stone-wall placement, defensive tower placements, more defensive military, etc.
The whole point is to make strategic walling much more important because you have to plan that you’re going to lose ground if it gets attacked and you have no military or towers. Palisades could have their build time reduced if needed to balance this out. Halving the speed also creates a breakpoint. Previously you could repair a house fully in about 60s for ~12 wood which is almost identical to the cost of building a new one (~33w). Halving the repair speed makes the repair cost about 52 in total idle time + 12 wood.
Overall I think encouraging layering and lose ground slowly is much preferred to the ability to perpetually defend a line by repairing or just building a single house-wall behind.