It would create the possibility of a very powerful player, or players, moving to a server where there all the top players are way below him and dominate that server. This would not be a good thing.
It also creates the possibility for powerful players from several different servers moving to the same server to create an uber-guild. This in itself may not be a bad thing depending on the circumstances. If they move to a server (new servers) or a server and realm (old servers) that already has an uber-guild it would revitalize GW and Arena in that server/realm. The problem is controlling what will happen when you have powerful players hopping to servers and the potential to destabilise that server.



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