There is a way to merge islands, retain their histories, fix the character/region ratio and at the same time attract new players to the game. It would take some work on the part of the devs, but it is totally viable.
Step 1:
Rather than merge islands by plopping two right next to each other, create an entirely new island, it's shape indicating natural tectonic movement. The tectonic plates that the islands are on are moving towards each other, causing islands to be pushed up between them, as stepping stones for them to fight or travel over. This creates a more aesthetically pleasing look than the prior suggestion, and allows for meaningful and fun interaction between the two previously separate groups of islanders.
http://s21.postimg.org/l9w2s1ic7/bm_islant.jpgStep 2:
Since this is an entirely new map, rather than two old ones shoved together, the regions will have to be remade and the realms re-set up.
Redrawing the regions is straightforward and even provides an opportunity for improvement (which I will get to in step 3).
Remaking all of the old realms, in order to retain their histories and such, is more complicated. They could simply be made as blank templates, like the ones in Dwilight were, and the transferring players could attempt to remake them themselves. But that would ruin character continuation and would provide potential for failure. The realms could be set up in a more detailed manner, with all of the transferring characters retaining their positions as rulers, dukes and such, but that would be a lot of work.
This is a tricky step, and there is no perfect way of doing it. Something is bound to be compromised here, whether it's continuity or simplicity.
Step 3:
When redrawing the regions, combine some of the minor ones in order to fix the character/region ratio.
Step 4:
Such a significant event, with such potential for novelty and fun, could attract new players or retain old ones. It could serve as a positive PR event if played right.
Anyway, it's a lot of work, but it would be beneficial in the long run, as it would alleviate many existing problems and reinvigorate a drowsy and shrinking fan base.
