What is the ďTippyverseĒ?
At itís most basic the Tippyverse is nothing more than a setting where the D&D 3.5 rules as written are largely taken at face value and as the basic rules for a world. More specifically, the existence of magic and magic items is integrated into the setting from the start and not tacked on.

Basic postulates:
1. Epic Magic does not exist, itís way too game breaking to try to make any setting that can work with it.
2. The deities are mostly silent
3. Everything else is pretty much as RAW (excluding some of the truly screwy things like drowning resurrections)

History of the Tippyverse
The Tippyverse (TV henceforth) was created when I was looking at the impact of long distance teleportation magic on a setting; more precisely just how badly such magic mangles the traditional settings. Letís look at the military and economic implications of such magic.
D&D is a setting where there are no large scale defenses against teleportation magic. It is impossible to prevent an enemy from dropping his entire military right into the middle of your nation with teleportation circles whenever he chooses to do so. The only viable way to defend yourself is to concentrate all of your vital military infrastructure in a relatively small area and concentrate your forces on that area; meaning that you will always have forces on hand to deal with a potential enemy attack. The traditional D&D towns and villages simply canít be defended because your enemies can drop thousands of troops into them in under a minute and then evacuate back out the next minute.
The concentration of vital government and military infrastructure in a single location is going to naturally lead to trade and other economic activity being focused on that area (large population usually paid in cash, very high security). This concentration of people is going to open the City up to attacks on their food supply, fortunately this problem can be solved by Create Food and Water traps.
Teleporation Circles will be set up between the City and fellow Cities simply because they are the only remotely safe and cost effective way to rapidly move goods between the cities. Who is going to ship goods by boat when TCís are faster, cheaper, and safer? Or by wagon train? The fact that TCís are point to point and have fixed points is going to eliminate the various small villages and towns that tend to dot the path between Cities both in real life and in more traditional D&D settings. The high initial investment of a permanent teleportation circle is also going to ensure that they are only set up between locations that can make them profitable within a relatively short period of time, which eliminates most of the smaller cities and villages as well.
All of this combines to create a self reinforcing cycle that concentrates the vast majority of the worlds population in cities that are linked to each other by teleportation circles, fed by create food and water traps (as farms canít be defended effectively), and require large standing armies for defense.
You are quickly left with the large cities (most on par with the likes of Sharn, or even larger, in terms of population) that hold upwards of 99% of the worlds non monstrous population and cover (maybe) one percent of the worlds surface and the Wilds between the cities that are filled with the denizens of the various Monster Manuals. The Wilds are also where you will find the small villages and thorps of more traditional D&D, where the population is constantly threatened by monsters, rarely exceeds level 5, rarely sees magic, and is basically subsistence level.

The Cities
The massive concentration of population and trade in the various cities (I recommend between a dozen and a hundred cities in the average Tippyverse world) is naturally going to lead to a concentration of wealth and knowledge. Securing that wealth requires a military force that can stand off the strongest of attacks and deal with even high level adventurers. The traditional Tippyverse tends to make use of armies of Shadesteel Golems and Warforged for defense, usually with Wizard officers. This kind of military force becomes necessary to defend a City from other Cities and the various powerful denizens of the Wilds, but it also has the side effect of making the initial investment required to defend a city quite high.
Depending on the DMís decision a City can be everything from a post-scarcity world populated by various spell traps where even Death is a rarity to a relatively normal D&D city. What the cities are is a location for high level political intrigue, high level adventuring, and of high magic. When the cities Guards are Shadesteel Golems led by level 10-15 casters with invisible Warforged scouts linked with Permanent Telepathic bonds flying overhead and hanging out on every street corner, adventurers will not get away with all of the various shenanigans that they can in more traditional D&D (where the PCís can regularly solo the city guard after tenth level or so).
Cities are usually ruled by a council made up of the strongest casters in the city. After all, might does make right in D&D and wars between high level casters tend to end badly for everyone involved making the co-opting of new individuals on this power level a necessity (and those that wonĎt play ball get ganged up on by every other high level caster in the City).
Over time cities will fall (be it from the attack of an enemy city, a flight of dragons, a civil war between itís leadership, natural disaster, or whatever else the cause) and others will rise to replace them. New cities are rarities but they do occur (about as often as cities fall).

The Wilds
The Wilds are the area between cities. Here is where you will find everything from dungeons to Orc armies to small farming towns. The Wilds are a Death World by most standards and most individuals will have a hard time eking out an existence. Magic is rare and largely limited to Sorcerers, Warlocks, Druids, and similar classes. Most individuals are low level and itís rare to find a PC class.
The Wilds are where you will find most of the more traditional D&D quests occurring (dungeon crawling in the ruins of fallen cities, clearing out various monsters, rescuing the mayors daughter, etc.). You will also find a few ďbarbarianĒ kingdoms out here (more traditional D&D kingdoms) where the very lack of high level magic (as those capable of casting it migrate to the cities) keeps the kingdom from reaching that singularity point.

What the Tippyverse isnít:
1. Itís not a world ruled by a single all powerful wizard who mind rapes the opposition (at least not traditionally).
2. Itís not a 1984/Parinoia/Big Brother world where freedom does not exist and the government controls every facet of life

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Now that the general overview of the Tippyverse is out of the way I will provide some of the fluff background for one of my games in just such a verse. Note that I coined the phrase ďPoints of light in the darknessĒ before 4e was even envisioned and thatís been the name of this setting from somewhere around 2007.
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Points of Light
 History is broadly delineated into two time periods; before Teleportation (BT) and post Teleportation (PT). Zero PT is marked by the invention of the Teleporation Circle by the wizard Akkarin. Fortunately or unfortunately for the world (depending upon your viewpoint), Akkarinís apprentice Lehon had a keen mind for business and realized the economic implications inherent in the Teleporation Circle. Within a decade the 60 most populous cities on Brychold were linked by a network of Teleporation Circles and trade between them had increased nearly a hundred fold, bringing much economic prosperity to those cities while simultaneously destroying many smaller cities and towns that depending upon trade routes that were no longer in use.
The City of Tung was lead by a fairly powerful mages guild that spent nearly 20 years attempting to reverse engineer the Teleporation Circle before they managed it, and unfortunately for the world they had nothing so benign as breaking Lehonís trade monopoly in mind. Tung used their own TCís to launch rapid invasions against rival cities and started what would become known as the Century of the Warring Cities.
A hundred years of lighting raids and vicious attacks saw then end of traditional armies in the warís between cities and their replacement with the Steel Legions. The Shadesteel Golem was first fielded by the city of Duvarn, whether they invented it or got the plans from somewhere else is unknown however, in the twenty fourth year of Warring and proved a match for even the mage guilds of the other cities; naturally leading to other cities fielding their own Shadesteel Golems in short order. The second half of the Steel Legions were invented in the City of Sharn 8 years later when the first Warforged stepped out of the first Creation Forge. While far less powerful in combat than a Shadesteel Golem, Warforged were much more intelligent and much cheaper and rapidly began to fill the roll of scouts and even NCOís in the Cities military forces.
The Century of the Warring Cities ended more in a series of non negotiated cease fires than it did treaties and to this day, over two thousand years later, most Cities still exist in a state of Cold War with one another. Of the 60 Cities that existed at the start of the CoWC period only 19 still existed as anything but ruins by the end of the period. The next two millennia saw the rise and fall of more cities until the present day, where 117 Cities and 32 Alliances exist.

While the Cities enjoyed great prosperity during even the height of the CoWC period, the rest of Brychold was rapidly falling back into barbarism. Without the trade routes between major cities and the army units assigned to patrol those routes to keep monsters away, most of the towns and villages rapidly collapsed as they lose access to vital goods and saw increased monster activity. Between the monsters, loss of trade, loss of knowledge (as most of those with valuable skills emigrated to the Cities), and bandit warlords the Wilds were chaos.
The CoWC period made the chaos far worse as the destruction of cities dropped hundreds of thousands (and even millions in many cases) of unprepared individuals into the Wilds. With criminals fleeing the surviving cities to escape into the Wilds, the mass number of refugees, and the ever increasing number of monsters as the adventurers who had been keeping them in line were almost inevitably hirer away by the Warring Cities, the chaos became even worse. By the end of the Century nothing larger than a town existed in the Wilds and most population groupings numbered at best 50 individuals who lived largely as hunter-gathers.
Over the next 2000 years the Wilds have recovered to the point where several barbarian kingdoms exist and farming villages have returned, although the vast majority of the population living in the Wilds is still one hard winter away from death.

Coinage
Thanks to the numerous means of wealth creation made possible by magic, the Cities have ceased to use precious metals and instead use the Drake (equivalent to the copper piece), Scepter (equivalent to the silver piece), and Sovereign (equivalent to the gold piece). All three currency types are created in three ways; the first (and least common) method is the same as the creation of any other magic item with each coin taking approximately a day to produce for those who know how to produce magic items (have Craft Wondrous items feat), the second (and most common) method is through the use of Currency Forges (resetting Wish traps) owned by the individual Cities and are capable of turning out a coin every 6 seconds (or 14,400 coins per Forge per day, 5,256,000 coins per year), and the last method of currency production is with the use of a Coin Purse (a magical item that captures a bit of a creatures essence when they are killed by the bearer and uses it to create a number of coins, the amount dependent upon how powerful the creature is and several other factors (used by DM to provide coin based treasure for monster encounters that take place in the Wilds)).
The communities in the Wilds still use Copper, Silver, and Gold coins.

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That's a snippet from Points of Light, I'll post an example city and example Wild's nation later. Feel free to ask any questions you have (either about the Tippyverse concept in general or the Points of Light setting in particular) and I will endeavor to answer them