I'm still dreaming of acquiring an Island, as a shared place to live. The idea is to gather together a group of like-minded individuals in a residential / low-impact commercial environment with no theme, but the general consensus that we would try to all get along, not engaging in activities that impinged on the enjoyment of one another (no major lag-inducers, clubs, casinos, malls, camp chair farms, giant rotating for sale signs, etc).
If enough people could be gathered, I would be willing to pay the upfront costs of acquiring an island, and residents would pay only the equivalent mainland tier prices for 2,048 sq m ($15/month) or 4,096 sq m ($25/month) plots of land.
Here's what the "default islands" look like, from Linden Lab's "Land: Island's" information page. However, the cool thing is that you can custom design every aspect of the island, as well, submitting an appropriately designed terrain file. Still, the default islands are a good place to start:
1) a nice coastline and interesting terrain, but I wonder whether the interior parcels might get a little dull (although they'd have the advantage of altitude)
2) maximizes land available, but is rather dull
3) very promising! the edge parcels having ocean, but the interior ones get a nice lake, as well as what looks like a good amount of terrain variety
4) also nice, with the bays and interesting terrain, but people with parcels on the western edge might not want quite so much water
My personal tastes run towards having access to water, gentle rolling green hills, and perhaps, if possible, a steep drop-off someplace for a bit of a dramatic look.
Although terraforming would be available, it'd be nice if the island started with a general terrain format that would be acceptable enough that terraforming changes would be more "tweaks" and less "drastic," because drastic changes might impact on neighbor's build plans.