I think the devs have added a lot of features that were impossible back in the day, that added a larger load to the servers. These are things they have added precisely because of more normal server pops, so it's probably impossible these days to do server merges. Keep in mind that current server populations are not low, they are normal for almost any mmo.
I think honestly, that some people want merges just purely out of comparison sake instead of actual reasoning, I've played a lot of titles and you can see quite easily that there are a few hundred people on the game (much smaller worlds so easier to actually judge). You only argue for it here because you can see the actual numbers and compare to years ago, on almost every other mmo people will use the arguments they do on FFXIV and just goto a busy area and say see the server is full!
The lowest numbers I see (and they peak well upto 1.5k+ at times) is 500, 500 is a hell of a lot of people. If you're telling me that you can't do the small scale content FFXI has to offer with that many people then there is something wrong with what you're shouting for. We aren't in the era where most everything required an alliance.
Oh and also when FFXI had 3-4k people online at once shout content DID NOT EVEN EXIST, everyone did everything in their linkshell 100% of the time and at set times because it was impossible to enter dynamis or whatever whenever you wanted. Nobody shouted for anything endgame related ever, at all. If you didn't have an event linkshell you did no endgame content, the end.
The problem with some players (those who aren't obvious XIV trolls) right now is they are refusing to be part of the community and expect FFXI to accommodate their shout content demands like it did for Abyssea, abyssea was by design so simple it was shout friendly and that is something totally alien to FFXI. Join linkshells and do content with people in those shells, where are all the event linkshells that used to exist? FFXI has always been a community game. Only since Abyssea were shouts even a thing and we aren't in the abyssea era anymore.
Nobody wants to join shells to do content anymore. They just want to shout for everything in a game not designed for that kind of system. When those shouts don't work they get pishy and demand merges for no reason or real benefit.
There are huge numbers of negatives to a merge, very very few benefits.

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