Well, it seems that there are three options to take, as far as backstory goes.
1: Go on a two-week bender with the staff and a couple volunteers, and churn out a well-established backstory.
a) You then proceed to make that official canon and judge continuity and setting based upon that
b) You judge the quality of the writing in context, making 'setting' a matter of detail and 'continuity' a matter of intelligibility.
2: Forsake the backstory, making it either irrelevant to the rules and the judges, or deleting it entirely.
a) This opens the option of releasing the wiki to the likes of the common users, at which point there would either be intelligent world-building or an impossible-to-contain shitstorm over everything.
b) Or, you could just not have anything beyond a bare-bones setting, and allow for the maximum amount of creative control.
3: Leave everything how it is, in a remarkable decision that it isn't worth the trouble.
I believe that nobody should get knocked for writing out-of-place, even to the extreme that Vigil did. His 'setting' wasn't in Althanas, but it worked for him, and as far as continuity went, I didn't see any problem. I haven't read all of his threads, either, but for what I saw it seemed well-written enough. I feel that the occasional romp through a decidedly non-canon setting should be judged fairly, but also that Althanas should be the core of the action here. It's up to the admins how it ends up happening in the end, I suppose. I just felt I should throw my two cents in.