Hey Asma! This is exactly right. If you were wanting to nest sites within cities, and cities within provinces, this is the exact approach I would take. You could even next provinces within countries and countries within planets if you wanted to take it that far!
One small addition that I will add though is that popServed and popCount have both been taken out of the sites table and instead are recorded as measures in the newest (still to-be-released) version. So they’ll be treated as site measures moving forward. But even within version 2, I think you’re fine to leave “popServed” blank for entities like cities, provinces, etc. They aren’t really "serving/servicing folks, so much as people are living there. But up to you!