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That's the point. We weren't top 10%, we were just a huge guild of relatively relaxed players. I did stop several groups from the guild who were trying to push me onto bigger content (mainly wars against stronger guilds). Those groups didn't leave and didn't complain that much, because I told them that my guild wasn't meant for that stuff when I was making it.
But even though we were like that, we still participated in sieges, we still attacked very strong guilds during those sieges (failed quite miserably) and then teamed up with another strong guild to try and topple the strongest guild on that server. And we almost succeeded during that siege, but we teamed up too late (cause like I said, this was a spontaneous alliance) and didn't have enough time to try a few different approaches.
And in the next wave of sieges (L2 had 2 waves for 2 different sets of castles) that big guild helped us get a castle of our own, which we then had to protect ourselves from several other guilds. And the helping guild wasn't even registered to that siege, so they helped us purely because we helped them attack the strongest guild in the previous wave of sieges.
All of this wouldn't be possible if the L2's castle sieges had limited participants or instanced battles. And like I said before, I think Steven is trying to achieve these same situations during Node sieges. But I personally don't see why node citizens would care much about other nodes. And Steven is trying so hard to push the narrative that guilds don't control the nodes, and I even feel that he might push for system designs that prevent that kind of control (though I'm not sure if he'd go that far).
And if guilds aren't as interested in foreign node sieges and citizens themselves only care about their own defenses - that would lead to fairly rare node sieges that only involve the attackers and the defenders, rather than having a much bigger impact.
L2 was built on guilds and castles were the biggest guild achievement, so pretty much every guild (outside of super casual ones), at the very least, participated in sieges. And if there was even the tiniest chance that they could get the castle - they'd try to do it.
Ashes nodes won't really be like that. Or at least they don't seem to be like that in the current design. Most citizens will most likely just live their random semi-casual lives and not care about what happens to other places, cause they wouldn't have much of a benefit from any given outcome. And castles seem to involve even fewer people into their processes.
I do hope that I'm wrong and that somehow it all works out in the best way possible, but right now I just don't see a reason why castle sieges should be limited, while node ones aren't.