I'm on Karnak also but I wouldn't welcome a server merge. It's nice having a small community even if it does mean waiting awhile to get things done. I think since October I have met one person who I didnt get on well with. I would imagine with a server merge it will bring with it server lag, overcrowded zones, camped NM's 24/7. I remember the big server merge of FFXI - Midgard went from being a nice server into a server where you wouldnt want to be anymore and it was just a mess. I am sure things will pick up with the PS3 release on Karnak anyway.

Most of the English speaking people are in two main shells on the server anyway which I am sure you have. If anything it lacks EU players. Gotta find more!