Blizzard officially shared with users in the World of Warcraft forum how Blizzard handles the free character transfer service and their views on server consolidation.

Here are the highlights Blizzard mentioned in its reply:
Server camp imbalance is the most complex problem facing the World of Warcraft nostalgia suit, and the team often discusses solutions. There is no optimal solution to this problem, but we will talk about ways to solve it and the purpose of doing so.
Not long ago we opened a free character transfer service on multiple servers in the game, which is to meet the requirements of players who "want to stay on a larger server". We're not going to stop small servers from getting smaller, or the birth of 'super servers', we just want to give a simple option to players who want to move.
Admittedly, the transfer service was long overdue, but some considerations allowed the feature to take so long to go live. For example, the number of tribes and alliance players in a server is basically the same, but if a large number of alliance players are not satisfied with the status quo of the server and move to other servers, this will destroy the original camp balance. The team spent a long time discussing issues that might arise with the transfer service and focusing on the impact of the transfer on the game after opening up the features.
A lot of players mentioned that Blizzard could try merging servers, and we wouldn't do that. The reason is simple, we don't want to destroy the special status that players gain in the server.
At the same time, Blizzard also mentioned in its reply that they will hold a live chat discussion in the community in the coming weeks to discuss the imbalance of the game server and other problems with the game.