In theory, it makes sense because players wont go to a high population server hoping to find more people to RP with, you just go to a server where everyone wants to RP... A higher population does not necessarily mean more RPers. This could actually lower the stress on the higher populated servers.

The real question is, would enough people actually go there to justify the server. They wont know unless they try it, part of the problem with that though is that alot of people may just make alts there to mess around with instead of actually play... which I'm pretty sure is already a problem on servers like balmung.

Honestly it wouldn't hurt to try but i doubt they would spend funds to create a new server just for this purpose.