Yup, most p2p mmos have region based servers, FFXIV and FFXI are about the only two that don't.

I would love to see region specific servers, and as you say new people would most likely join the server that is designed for their region.

If the game had been like this from day one I doubt many would have had a problem except a few, now because everyone is settled into their own environment they don't want to leave the friends they've made etc.

Personally If I was Yoshida I would grow a pair and make recommended region/time zone specific servers.