I understand the desire to limit server transfers as a means of balancing populations, but there are a few things that need to be taken into account.
For one, many players, including myself, rerolled on a new server in order to play with a higher population prior to transfers being available. We would all really like to be able to put all of our characters onto one server. So, in the initial round of transfers, something needs to be worked out so that people can unify characters onto one server.
Second, some people want to change what type of server they play on. I have characters on an RP server, but would actually prefer to have them on a regular PvE server. Other people may have started on a PvE server, but now wish to get characters transferred to a PvP server. The origin type and destination type servers should not be strictly the same.