From my friend:
Cut the population in half by making separate servers. Let players choose, do they want to play Server One or Server Two? That way you don't have to change anything else, and it works much better as a solution instead of completely gutting the combat mechanics.
i.e., take PC-NA and split it into PC-NA #1 and PC-NA #2, then PC-EU #1 and PC-EU #2. Same with Consoles.
Other idea: Split PvP off of the servers. Give it it's own area. Also a good fix.
NOTE: This obviously is instead of the proposed AoE changes. : )
Please consider.
(Do not post hateful comments. Constructive criticism only, please!)
if I could make another character, their name would be Cries-For-Character-Slots. AKA, I need more.