I think it'd be a much better idea to have something similar to a "MegaServer" I understand it was started in WoW and GW2 what it does is allow people that made their characters on a specific server to play with others on lower population servers, not only that but with the megaserver the zones would be shared with the data center and people on 1 server would be offered to join a lower population server to help out with a FATE or hunt, something like that, it would also allow for a cross server party finder, and it'd be possible to ad something similar to playonline's mail system using the mogstation so you can talk to your friends on other servers, it'd have your friends on a friend list from all servers you added friends to your friend list the reason this would work much better than server merges is because you won't have to change the housing or offer transfers to lower pop servers.

Here is the con's for server merges.
1. people would lose their names (change thiere names).
2. people would lose their retainer names.
3. housing issues.

another option aside from the megaserver idea is locking out over populated servers for transfers, and offer incentives to people that are on over-populated servers to move to a lower populated server, I've went from a dead server to a over-populated server and the grass isn't always greener on the other side, what's your thoughts on this? what would you like to see? server merges or the megaserver idea?