When Westgard was founded, it was (as I recall) one of four realms set aside for refugees of the sinking, the other three being in the south of the EC where the ice receded.
If they wanted a PvP realm, they could go to Alara, Minas Nova, or Greater Xavax (as they became). If they wanted to fight monsters, they could join Westgard.
If I recall correctly, there were still several people who didn't pay attention to what they were getting into, and complained about Westgard being all PvE. I don't think they stuck around long.
