What are the zones that you referred to in your first post? How do they relate to the first zone that consists of 16 sectors?
Am I trying to look for a precise distinction that isn't there? I think I was just thrown by your choice of words.
Are you simply saying that the main 4096x4096 terrain is split into 16 sectors as follows:
and a player might wander through these and see, at any one time a sequence of 2x2 adjacent blocks something like this with wrapping:
AB (player starts in lower right corner of A moving towards F)
EF
FG (moves through F towards K)
JK
JK (moves through K towards O)
NO
OP (moves through O towards wrapped copy of D)
CD
DA (and so on through the wrapped terrain)
HE
which joined together would look like:
then I can see it should work well.
It effectively gives you 64 different subzones because each of the 16 sectors can be any one of the four corners. With differing population with buildings, trees, rocks, etc, it really would seem endless as you say.