Hmm i think that a hardcore raider could swap to a very low populated realm just to get the realm first.

There's also the issue of:

a.) if you're casual on a crowded server, having wait times to even log in upwards of an hour isn't really beneficial, and economy no way outweighs that...

And

b.) As an inhabitant of a low-pop server, I'm going to admit being appalled at the assumption that population is a guarantee of quality or services. On the whole, I've found as many high-quality palyers on my tiny realm as I have on any larger server I've ever played on- and more people with high-end enchants that consistently make their services available without having to spam for an hour in trade.

Server density is only a guarantee of greater potential frequency, not quality of any level at all.

So offering free transfers to places is often a benefit to both the player taking advantage and their new homes. It makes lots of sense for lots of people, including those looking for a greater sense of community. ....just my two cents, anyway.

Personal problems, a dislike of the server culture, or maybe they want a different type of server..... And also, "densely populated" doesn't always mean "better progressed".

I would hate to be on a heavily populated server. I have only had to wait to log on once, on the night wrath launched, and even though I only waited for five minutes I was annoyed by it. I can't imagine waiting an hour or more on a regular basis to log in.

I apologize if I seem to be implying that heavily-populated servers are for sure filled with better quality players. It was just my impression from my limited sample of 4 servers x 2 factions. If you do think about it, there's no reason why numbers would correlate with quality. But the fact remains that it's still easier to find pugs, and there are more people with enchants, etc.