Since the destruction of Genosha and after HoM Magneto has stopped trying to conquer the world and just develop a place to help mutants, he already had that character journey before but editorial needed him to become a villain again after Claremont left sigh but well. Post Hom and after Utopia fell he talked about this with a mental image from Xavier, thatīs also why he formed a new X-men team with the young 05 X-men, after Scott and Wolverine died, because he thought the X-men needed to still be a superhero group outside the school while Storm and Kitty took care of the younger generation of mutants. Then X-man kidnapped him and the other X-men to his Age of X-man world and post that here we are on Krakoa. Itīs not out of character for the X-men to trust or work with Magneto, he actually has been their ally for years now.
Krakoaīs economic development is not about taking control of the world itīs about stopping Orchis from getting the economic strenght to attack them with sentinels and thatīs pretty much it since they donīt even have war protocols in place for their country.
Anyone can ask for permission to enter Krakoa, visas work that way as well in the real world.What Cyclops did was controversial even to the other X-men. In Krakoa Democrat isn't a thing, when Emma asked about an election he shrugged it off as if it was "coming" but he was in no rush to do it. And for Krkaoa to have second class citizens requires them to have large groups to suppress, instead they went harsher they kept everyone out, with a few exceptions. But if you're not on a minisucle list, even if you're been a friend for years simple tourism is not an option. Krakoa judges first and foremost on someone being 'right' by their DNA, this is policy which remains to questioned generally by its citizens as being wrong.