Assuming this is true, how the hell would it work?
To keep the same general premise of the game in tact, it would make a terrible MMO (Each player getting an entire town to customize, as part of a larger community)
The solution to keep it interesting isn't without big problems though, being many players with individual homes inside a larger town (Each town being a server most likely) This would cause problems with things like tree placement, bridge placement, etc. How would land be divided? Would other players be able to, say, cut down my entire orchard of Peach trees? Because if they could, they would. Also, things like Museums would become 100% complete in NO TIME.
Don't get me wrong, the constant 24/7 world of Animal Crossing is a perfect fit for a Social MMO, but the gameplay premise would have to change drastically to make it work. That said, such a drastic change *might* be the kick in the pants Animal Crossing so badly needs to stay fresh.