This isnt about his rules its about people breaking them.  He can keep the plot limit at where he wants, he just doesnt want people to break the rules.

"I just want to see what other town mayors think about this, you think residents should read the rules and follow them or do you just don't care ?" nothing about the rules them selves, just how to deal with rule breakers.

I think that when you invite someone to your town who opens by saying " I just joined the server today, anyone got a town I can join?" you take a risk. While I was once a new person to the server, it is not hypocritical, it is true. So when you invite someone to a town, you always take a risk, but it is even greater when the person has not played before on a multi-player server.

So, to answer your question. If you ignore town rules, you should be warned and if you fail to follow, you should be kicked. Pretty simple.

I would suggest that your rules as you have them written above could be clarified. What is a "floor", If I build a three story tree farm for jungle trees, have I broken the rule? That is just a suggestion to think about.