I suppose that's one way to prevent new players from entering overpopulated servers..

[Nadirah]

It probably has to do the with the way they structured their servers or some such, where the server doesn't (can't) check whether you have a character already or not when asking to create one. Whether it would be easy to fix or not I don't know, but it's really annoying.

Except it can, because you're limited to X per world per account type.