@Ovnidemon
At the start of the beta, noone had really clear expectations of the game.
Now that the game has officially launched, people have a basis of information to use to start with.
As for the previous 'young master' , he wasn't the best player, he was just a very high level, which he could've achieved with quests and lots of allies, not actual skill. He was envious of the MC for having that much cavalry, not his insignia.
And at that time, the MC was a pretty high level, and he had never actually done something with his group then if i'm not remembering it wrong.
And I wouldn't say they 'control' the town, I would argue that they're a major faction near the town, but they've never actually tried seizing the town (whether or not they could succeed is another thing, it's what factions should do later on). They're unofficially a powerhouse in the local region (which might not have been liked by any other better teams, so they then by virtue of being the lone group end up as the strongest).
In modern terms, they would be a mix between a very strong gang and a small para-military group who's known in the region, and most of the locals have no arguments with them one way or another, and since they haven't outright attacked the local government, they're left alone.