I'm not sure but hero transfer option may create dead servers. There are only a few servers people wish to play on nowadays.
But merging 2-3 less populated servers into a one would be good a good idea.
The problem with server merges is that it is a
MASSIVE change. The entire server dynamic will get messed up, as each server's dominant clan suddenly has massive competition. Smaller clans on each server get pushed even farther down, since now they have to fight against at least one more clan, possibly more. Item prices may also fluctuate briefly, but that's not really as big of a deal.
The only way this should be considered is if VR finds a way to poll each server in game. The best situation would be for them to display a notification on log in, with good, condensed information about the merge, and a yes/no vote. Links to the forum for more info would be even better. They should leave that poll up for at least a month, because some people log in less frequently, or may be taking a short break from the game. Just because they only log in occasionally doesn't mean they shouldn't get a say in the future of their entire game experience.
Then on top of that, when the poll is concluded, the only way this should go through is if there is a 90% (roughly) yes vote. This is something that will majorly affect everyone on the server, and if there is a large portion of the players that don't want it, it shouldn't be forced on them.
Granted, the newly merged server would calm down eventually, maybe 6-12 months after the merge some of the clans will have sorted out their own merges or treaties. But I think it would still end up causing major drama and troubles for everyone involved for a long time afterwards.