Yeah this is basically just the current plan, although I agree with you that people get very touchy about the name of the color server they play on. "Teal" players still bemoan the merger into filthy "Green", but they could have easily just called the resulting server "Teal" instead of green and then the green people would be bitching. The servers merged, it's a completely neutral action you dumbos.
The big issue with the merger is that many legacy items from green will suddenly be co-mingling with the blue economy, but they could just make it so that any character that was created on green can't trade legacy items to any character that was created on blue, nor any character created post-merger. So blue players can still sell manastones to other blue players, and green players can still sell manastones to other green players, and the economies stay separate for those items only.
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