Diversity is one of the game's major source of content. I have absolutely nothing against the people of Syntax and Recursion, but I don't wish to be on the same server. This isn't because of some elitist delusion of grandeur, just that in observing and respecting the differences in how people play the game allows this diversity to flourish. Syntax and Recursion, from what I gather, are duel and organised mass pvp-based. Vector's hostile nature means that pvp is much more spontaneous. As it stands, we all have the choice to play on the other servers on a whim, and this allows a crossover of diversity and a population bump in itself.
I wouldn't want to see the servers merge because certain players would be forced into undesirable styles of play, even if districts were broken down into pvp/non-pvp areas. For whatever reasons the players on Syntax and Recursion have for not wanting to be perpetually flagged, they should be respected and observed as their autonomous choice. Just as the choice of Vectorians should be also. I agree that the structure of the storyline would become much more linear, and one server would make LESIG's job a lot simpler. In acknowledging the bigger picture however, I still don't see it as a viable option.
I'm all for the 'one world' aspect of one server, but I think a better alternative would be an optional fourth server, the specifics of which to be discussed.