For city fighting, factions are the way to go. As far as a new PvP "hotspot", just start solely looking for/announcing action in your preferred location. Build-it-and-they-will-come sort of thing. Historically, Destard is just a place of habit -- it wasn't a conscious decision made by players. It started as a place to reliably find people to PK (Magi quest location). Anywhere PKs gather will attract PvP attention.
My two cents is choose somewhere without a moongate in the immediate area.