The third island. From here, things became more complicated.
When Damien used the same strategy to gain information about the third island as a whole, he found that Kura had indeed given him the basics of survival.
In essence, it was exactly as she said. He could follow a path and challenge anyone he saw until he reached the platinum badge level. After receiving his platinum badge, he could choose between any of the six Area Lords to fight for a chance to move to the next island.
The Area Lord position never consistently remained in a single person's hands. Hell, even the Area Lords themselves didn't abuse their power or obsess over it.
As Damien expected, the people on this island had begun to cope with their reintroduced emotions. They returned to their rationality, though they still made rash actions on occasion.