Lol @chadz
Yurop!
If I called the shots I would opt for a separation of the two communities in Strategus. As Ironlake already stated, the current situation will not be resolved by just scooting all NA and EU to different sides of Strat. It might worm temporarily, but the same fundamental problem still remains. When people cross this "border" - and people eventually will, they will be forced to fight under frustrating conditions. Frankly, there are none who enjoys fighting with 200+ ping, not NA not EU. If there is then you're a charmed few.
Also, no one likes fighting 4 AM in the morning. People have work and school, it's just not fair that to successfully establish a faction you have to be up on your toes 24/7. I'm sure there are some who are willing to do this, but majority of people cannot fight at these times. It's alienating Strategus from the majority of players. The most ideal solution would be to limit the time in which battles can take place. 1 AM should be the latest time allowed, weekdays 2 or 3 AM even.
Granted, this would also hinder the rate at which Strategus progresses, but in my opinion this is a low price to pay to make Strategus more friendly to new players and casual gamers alike. As the lead dev, chadz, it would be advisable to aim for a more friendly and approachable Strategus so that you can get as much feedback as possible and as much spread as possible. At least, this would be my aim. I don't see how it's unreasonable.