I still say that the ideal solution to the problem is to limit the amount of power that a guild can have. Unfortunately that can not be done without having the Uber guilds shed members and that would not be acceptable. Giving a handicam to the players that die in GW will make the smaller guilds more competitive.

It looks like, at least on your server, the merger made the problem worse instead of better. maybe what should gave been done is to cap the power of the Guilds somehow so that players from the two Uber guilds could not merge and the uber guilds can no longer take in players that have become stronger. Then those players would get together and form a 3rd Guild that would start to grow and eventually be competitive with the other two.

The handicap system wold still work anyway because it is self limiting.