If they don't like dark holes, gritty sewers, and rundown alleys they won't get too happy with NC anyway
Srsly, modern MMOs are too colorful imho...
Anyway i think Trivaldi is right with the fact that it gets pretty tiresome when you have to walk all the way with your low runspeed as noob. I'd place those new NPCs where the red marked walls are now but open up the zone to its old size anyway. this way players must not walk all the way but if they want to explore they still can!
The best from both POVs, is that a deal?