I think most players who quit playing, just don't bother logging back in, others use years of shields,or make sure that no one can gain anything from raiding their old town.
I've assumed that most players who ask for their account to be deleted have other reasons than starting again from scratch.
I do not know if they would delete you and start you again from where you are now.
What I do know is, that if you start a new game you will be in a new kingdom, this may or may not what you want.
If you want to go to your present kingdom, you will have to move there within 2 weeks of opening the new town, and keep your palace no higher than level 5.
Otherwise you will have to wait till you are palace 21, and hope that you have enough drakkars to move there, and if there is room in the kingdom.
As Krow says it appears that you have to Ask a question in the Menu or pm a moderator to delete your account. I don't know what happens after that.