No more division into PVE or PVP - most players do both, there´s a fringe minority that is absolutely only doing one or the other. And I think that´s the way the game shines at it´s best - it´s like ying and yang.
Keep the Hardcore Server as is, but merge Nzoth and Y'Shaarj and PVP should be ON for every charcter permanently, no worming out. It´s part of this game - dont´like it, go to another server/play another game. Dividing the players by this in servers, or letting them opt out on the same server by disabling/enabling PVP as they see fit destroys the game in way I can´t explain in my opinion.
This is the most crucial change that needs to happen I think that would benefit the server and even the players in the long run. It will force alliances, playing together, human interaction and so forth.
PVP and PVE is like ying and yang on WoW - both should be played.
The OG Devs built this world for a certain amount of players, we should adhere to that and it will feel better. I noticed this while playing on the very thin populated PVP server Y´shaarj. Every encounter with players felt more alive, more talking, trading, helping each other out... When the servers get too populated they start to feel like you are playing with bots and NPCs - people zone out and loose social connection, they rarely talk, they just get a sinle player mind. But this is a Massivley Multiplayer Online-Game and it shines the best and makes the most fun when it also feels like one.
This should be achieved by capping servers at 3500 Players online at the same time.
If this number is held for a while, the team could start a new server to accomodate the player base.
Ying Yang principle comes to mind again - have too little players and game becomes borderline unplayable - have too much and it´s sucking out a lot of the fun and awesome aspects of an MMO and also kinda destroys the game.
With these 2 changes I feel the game would be improved immensly - remove PVE/PVP and make being attackable by the opposing faction a fundamental principle of this noble game. As it was intended IMHO. Cap the Servers at 3500 and see how the community comes together and people get infamous, friends are made, server wide legends are born and so fort...
Just my 2 cents