As I have seen other games do this, I know its possible. I personally, believe the servers SHOULD be merged into (at least) TWO larger servers.
Many people from servers such as Indigo, Palenque, Grimdal etc, are no longer to actively participate in a greater part of the game EVEN THOUGH they have spent hundreds to THOUSANDS of dollars on this game, the LEAST Runewaker can do it merge them into a larger server so they can experience the full potentiality of the game. More runs would happen, the economy would be better. Hell, people would even have fun again...
Something GF/Runewaker need to seriously consider is the possibility of a server merge (which is possible).