Server mergers are a step in the right direction, but there is one huge *but*. They don't address the real problem of city bonuses being so necessary that without them, many people in underpowered or losing guilds simply give up. I saw this in server 116 recently. Everyone left a guild after they lost a couple of important guild wars battles, and they joined the other two guilds that won the battles.
Servers die because of the cities imo. Many top guilds know this and strive to create a balance of power to keep the game competitive and to prevent a dominant guild.

But a band aid is better than no aid imo. So bring on the server mergers.