So lets say server 4 is very popular, LSs from three other servers all end up choosing it, your LS wants to go there with the rest from your server, you sign up, theres 10 spots left before server is full, and your number 11, {that's too bad}.
While I do not hope anyone gets into that kind of situation, I also won't pity anyone here who does who where in favor for this system.

I'm sad to see the playerbase for XIV include so many people who barely can see past their own nose, instead being content with a system that beneifits themselves over a system which would benefit themselves in the just as much but at the same time also work alot better for more people and reduce the risk of being seperated from friends for thoose who care about their current in game relations.

Honestly you have to agree that its very silly for a developer to go "hey could you guys sort this out? We think you should be able to come to a solution!"i.e have every server talk among themselves to decide which will be their "default" server.
Is that the responce you want for future issues like lag or perfomance problems "hey could you discuss with fellow players to find a solution to your problem, thanks!"

It's by far not the end of the world but its still an important topic to discuss as far as theese forums go.

And honestly though with this kind of attitude I dont belive XIV will ever be a big contender in the MMO market, wouldn't be surprised if populations ends up around pre p2p after 2.0 has hit, and that be sad cause I still belive this game could have so much potential.