I think the land cutting policy should go further. Parcels under 128sqm should not be resellable at all unless they're combined with adjacent land owned by the seller.
Right now micro parcels are still being used to pressure neighbors into paying ridiculous prices, because the land is basically worthless to anyone else except the surrounding owner. If someone ends up with an isolated micro parcel, the choices should be to keep it or abandon it, not use it to pressure neighboring landowners into overpaying for it.
It would help reduce land extortion and discourage abusive land cutting.