Yes, when you login the next day, you will be told you have died, and you may then reincarnate into a new town. You can also wait to join your next town, for instance if you want to try to join with a friend.
This'll change as the "worldwide" version of Die2Nite grows to feature-parity, possibly. Motion Twin has hinted, however, that each community may very well go their separate ways for the time being.
That said, proxy and VPN would work. I haven't checked their terms, however, as I can't find them.
Before you go ballistic on the wiki and the tables, be aware that many constructions can and should be upgraded, so comparing their base values may be misleading.
Defensive focus, for example, doesn't net you any instrinsic defense. However, it brings more value from your defensive items. The first level gives you .5 extra defense per item (which was +23 def for us!), and the bonus increases with every following upgrade (level 5 gets you +8 def/item instead of +2).
Upgradeable wall is another good example of this. Level 1 is a mere 15 defense, but level 2 gets you 51 defense, and it only goes up with each upgrade.
Best Answer
Yes, when you login the next day, you will be told you have died, and you may then reincarnate into a new town. You can also wait to join your next town, for instance if you want to try to join with a friend.