From "THE PHILOSOPHY BEHIND THE SAGA OF RYZOM"
http://www.ryzom.com/?page=game_philosophy
"It is not necessary to spend more than 30 minutes at a time in the Saga of Ryzom to feel like an active inhabitant of another planet, Atys. But for those who wish to go beyond the stage of punctual fun, the Saga of Ryzom can offer the grail of becoming the leaders of entire civilizations composed of other passionate players. You might have been playing in teams and guilds. The Saga of Ryzom will now take you beyond these limits to clans (group of guilds) and even in governments. When you finally get there, you will discover another game within the game. A game of power that no other game could even touch."
From his letter about the extension:
"An important SoR extension will soon be announced.
All I can tell you for now about this new extension, is that it will be free, and that it is designed to give you never seen means to impact both the game world and the game story. This extension will officially be announced at this year's E3, and I personnally believe that it will open entirely new horizons for the players of SoR. It also represents a huge part of my personal motivation in creating Nevrax, and the Saga of Ryzom."
So my thought is that this new extension will be player run governments. The "game within a game" coment leads me to beleive that the people in charge of the player run governements will have to make decesions about laws, taxes, what to spend money on, how much you pay people. Kind of like a simcity. This could lead into some very cool situations. Some examples:
Players could charge a tax to build up military operations. They build an army and send it off to take over another races land.
Players get mad at elected officials and revolt.