MMORPG.com [Jeremy Starley]:

Inn rooms and player housing have been brought up before as a place to store and display things. What plans do you have in regards to groups of players constructing entire towns or forming their own mini-kingdoms?

Eric Slick:

We very much like the idea of players being able to build their own communities in-game. As such, we have some very interesting plans for how we’ll accomplish this. However, it is unlikely that players will see free-form town construction. There will be private homes, and private communities, and private guilds … even private hunting grounds (estates.) Players will be able to customize these to a great degree, and each will include fun features. Homes and communities should be about more than just inventory storage and trophy displays, after all. We also have preliminary plans for larger scale, private areas like those mentioned, but those are slated for future expansions to the game, and it is much too soon to discuss them.

Beyond that, players will be able to architect great structures as part of quests: mage towers, bridges, walls and sentry towers. Players will be able to destroy things too – through fun sorts of demolition that include explosions and massive impacts.