I'm happy to see some activity! :D
I haven't been around nearly as long or as much as many others have, so I'm unsure how much my input or feedback would be worth, but here are some of my thoughts:
Condensing groups makes a lot of sense; I personally love having a bunch of choice in where to stick my OCs and plots, and have a lot of fun molding characters to fit their specific surroundings, so I'm not super enthused about that idea, but, logically speaking, it's way easier to manage and, considering the quality of writing I've seen around here, I'm sure that each character's story and the overarching plot(s) will still be equally as engaging and interesting—or even more so, because there'll be a stronger sense of community and connection. TL;DR: sounds good, makes sense, onward ho!
Considering a new game vs. building on TNW: I think improving TNW would be pretty nice—there's a lot to explore and create, especially with these iterations of characters on the roster, so I'd be hesitant on having something else next to it, since, as you mentioned, activity is still pretty low. Having a new game pulled up after the user base grows a bit, though, is definitely interesting, and I'm intrigued as to what's in store for that!
The slow introduction of electricity and more modern life is definitely awesome to me! Lots of opportunities and unique situations can spring up in the wake of that, both plot- and character-wise, so I don't see any downsides to that, as far as I can tell. Double thumbs up!
In general, all of these developments seem interesting and I'm definitely inclined to see them through. My schedule as of late has been super clogged with schoolwork, though, and I'm not experienced at all with Bearbones or the overarching storylines of TNW, though, so I probably won't be taking center stage (or anywhere near that) anytime soon :P Regardless: I'm excited and can't wait to see what comes next.