So through personal experience this is what I've came up with so far using a regular 1x server to improve balance within the game.
Currently tier 2 requires you to be level 20 to obtain. I believe this should be reduced to level 15. The reason behind it, is that people around this level are usually settled. Anyone lower should consider moving when a local player in their area decides to raid them repetitively, but for someone who's 16+ that's a bit excessive to expect them to move. That's just my opinion.
Crafting stations and fireplaces, should be unlocked for everyone. If you want something locked up, put it in a chest. The reason behind this, is some people just want to loot you, not waste their resources to demolish everything you have. They do it because they're required to destroy the crafting station before they can loot it. Crafting stations should also require more swings to destroy than other items to deter them from destroying everything.
Damaging Loot Bag Bug?
When I raided I accidentally attacked a loot bag that dropped from a crafting station. When hit, it disappeared. We shouldn't be able to destroy loot bags. They either should take the loot or leave it on the ground to be recovered again.
A steel hammer should be implemented and it should be the only weapon used for demolishing walls, doors, and other structures. Using a sword feels wrong and it causes a bunch of AOE that damages parts of someone's structure you never wanted to do. It felt wrong. Chests should also be destroyed a regular hammer, not a steel weapon.
Raid Griefing with Animals
After you make a hole in someone's base, you can easily use animals to finish off the rest by just sitting around while they try getting to you. This feature should be removed or only give to animals who are powerful enough to realistically destroy a wall. Common animals shouldn't be recommended to have this feature.