I can understand why people like low populated servers because the battles tend to be more intimate. The lower the population, the more epic fights get because you can actually focus on 1 or two people and not have to worry about anything else. Whereas in a higher population, you can roleplay as a lawn mower and cut people down left and right, the only distraction being the mass amount of chaos around you.
In NA I remember having servers like Tunatown or haven, which I do indeed miss, but don't really need right now. As far as new player/peasant integration goes, I'd rather have everyone condensed in the few servers we have available now so the new guys can see how a multitude of good guys play.