The problem is that they seem to be basing this decision on traffic within the forums - but there won't be any traffic if the system is difficult to use like it is now. It's already annoying even with the minimal traffic there is.
It is difficult enough, especially from the RP end, to find like minded players and events when the shards make the number of people you are sharing the virtual space with so small - there were less than 30 on Hoth when I was there recently - but it makes it even more difficult with this forum system. I understand the reasons for the population limits having to do with performance, but there needs to be at least one outlet somewhere where the universe you're in feels BIG, like you are a part of a truly massive game universe.
I respectfully suggest that the benefits of individual server forums far outweigh the possible issues regarding keeping them a friendly place to visit. An unpleasant place to visit is not worth visiting (see many other areas of this forum), but a difficult to use/navigate forum is ALSO not worth visiting. It seems to me it's at least worth giving individual server forums a chance to help foster server community.