Hate to say it. But why not? Switching should be seamless and free and instantaneous if it can be. Might save the declines everyone is talking about.
I know there will have to be some changes in character slots and the way that works, but I doubt there are people with 4 toons on every server and play all those toons. Why shouldn't we be able to go to a populated server if there is space with toons from other servers? Is it that big of a deal to transfer over? If so Turbine can just streamline and automate it. Maybe even charge a small toll in TP for transfer. And if one server is on the slow side they can get rid of it or it can be a place for others to avoid trolls or for static groups and those that want less lag. They could even have promotions server specific to try to migrate players from an overpopulated server to one that is underpopulated with xp bonuses and other bonuses. I am not a tech and have no idea if this is possible.
All I know is the pug scene sucks sometimes.
Maybe hook up a group on a main server and then migrate to one with less population and maybe less lag.