I started this case with little info. Now that I'm more aware of the situation, it seemed like this (or something similar) was inevitable. It still seems to fit the mechanics for a realm merger, though. I'm content either way this is decided. The merger rule could potentially draw too many people away from the game as realms slowly wither.
Then again, I wonder why people stayed in Farronite? Dwilight is huge and with a good variety of flavor, not to mention other continents. Did people grow attached to their positions and lordships?
