In a merge, how do you hanndle people who have the same name? Whose name gets changed? It there is a Baxter on Grimdal and a Baxter in Indigo, one of those two is NOT going to want their name changed.
The same way every single other game handles it. You act like no game has ever done a server merge before.
@ topic - They probably haven't finished developing whatever tool it is they need to do server transfers, let alone server merges. I'd say they're probably not experienced enough to handle merging a server at all, considering what happened when they moved all the servers to a different location. And in all honesty, it's probably better for them not to attempt a merge, and keep all data intact, than to attempt one before they even fully know how, and end up corrupting most of the data from both servers.
And yes, the reason the PvP servers are dead (and have had a much lower population than other servers, as long as I can remember) is probably the same reason PvP built this way dies out in other games. It is ridiculously easy to create twinks in this game. The same type of system in Aion was the reason they implemented buffs that killed all open-world PvP, and honestly, short of ruining open-world PvP in a similar manner, there's no way to make it fair to new players with the current system. Put a level cap on it, and you'll still have 10k hp level 30s ganking first-time level 30s with 2k hp. Some people just need to make themselves feel better by "winning" against people that can't fight back. It's the PvP server design that's at fault here, because it allows this type of behavior.