You had no sub and were not paying when the servers were merged. What did you expect? That they let you block the names forever only because you used to be a customer, once upon a time? Grow up.
Likewise, one could argue that those who were not willing to pre-order for a chance to claim their name(s) should cut their losses and grow up. See how that works? Guild Wars 2 nailed it by making names region specific, not server specific. That way, if I go back to Guild Wars 2 three months from now and they've merged servers, I won't have to worry about having to rename a character I spent hundreds
of hours on.