Perhaps there could be some sort of weight given to people on the same server..for example if 2 people from the same server are queued, LFG could make a point to group them together

Have you considered inter-guild runs on sub-progression content? They can be a great way to build and maintain rapport.

Allison writes that "I've spent increasingly less time hanging around Dalaran watching for the players advertising for a tank or healer." Yes, but 99% of us lapped the city while chatting with friends over Vent. I'll admit, the first or second time you can get serious airtime on a warbear from a shop ramp is sublime. But thereafter you'd probably rather be running an instance.

"Doing 5-mans with other people from your server is a great way to keep your thumb on the latest gossip, trade news about how your guilds are doing"

I didn't do that before the tool. The only thing I did in fivemans what talk a little, sometimes, and that I can do now as well. There are few that discourage talking if someone else starts it. There might have been the rare "Hey, you're not all that bad. Wanna join our guild?", but frankly it was hardly noticeable.

I totally see the same problem with the lack of social interaction. It was a hard elite in Aranthi Highlands that got me in a group that found the guild I played in for 2 years, that elite is soloable now.

Then it was in dungeons that I met various people who became good online friends (and even a few I then met in real life), it also was the way the guild recruiting worked most successfully.

Now with cross server grouping I can no longer carry on adventuring with them, or even see them again likely, that's not good for the long term future of the game. Its only the friends I still have in the game that tempt me to go back to it again for a bit.

I agree. While I wouldn't want to go back to the bad old days, I feel that the LFG tool has introduced a whole new level of anonymity to this game. I might as well be grouping with NPC's for all the interactions that I see in 5-man's. Except that with NPC's you get consistent results and no chance of being jerked around. This is supposed to be a social game, yet, I have never played an online game where it's so difficult to make any kind of lasting social contact. Everyone is intent on doing his/her thing, and groups will never last longer that strictly necessary. I started playing online games back in the old Meridian 59 days. I then played, Ultima Online, and Everquest. All of these games appeared truly social to me. I made tons of online friends, seemingly effortlessly. In WoW, it's like pulling teeth.

Maybe it's a small town/big city type of thing.