Why don't we just have one Mega 'MEGA' server located in the US. The game has been perfectly playable with the current EU mega server located in the US, with no noticeable lag at all.
The benefits of the one Mega 'MEGA' server is obviously a fully populated world 24/7. If you are in Europe and want to play in the early hours of the morning you are in US prime time, if you want to play at 8am you are in Asian primetime. I'm sure it could even be set so that you are first instanced with those in the same time zone, and only if the population in your time zone is low are you then placed in instances with players from other time zones.
It would also mean Cyrodiil is populated 24/7....thoughts anyone?