Currently, World vs World strives when there is a large participation of guilds, both for ppt as well as openfield and GvG. If there are a lot of guilds gvg focused guilds will have a variety of enemies to fight and compete against. Ppt focused guilds will have a variety of open field guilds that can assist them when it comes to holding down a structure. Furthermore, guilds tend to formulate better organization, strategy and can play world vs world as they please with the people they wish to play with.
Unfortunately Guild Wars 2 does not assist guilds that wish to participate in World vs World activities. First of all, PvP and all PvE events such as temples and dungeons even edge of the mist (its basically pve hitting constant doors, avoiding fights for the sake of exp and karma) are not constrained by servers due to the megaserver system.
Guilds that focus on PvE, or PvP have a large pool of players they can recruit, this is especially true for new players that come to the game. If someone is new to the game but is interested in conquest mode, they are more likely to join a new guild trying to establish themselves in PvP. On the other hand if a World vs World guild that is new is trying to establish themselves the barrier that faces them is a lot higher.
This is due mostly due to the fact that most players invest in PvE and that there are a lot more updates and content releases for it, More importantly however, Pve, PvP guilds are not limited to simply recruiting players from their own servers.
With megaservers, it is hard to determine whether someone is in my server, I can recruit a player to the guild and only to find out that the player is in another server and the cost to transfer is much too high.
Free transfers will assist guilds that focus on world vs world and will also boost world vs world interest. Guilds will then be able to recruit individuals especially new players who are in other servers convincing them to transfer in order to participate in World vs World.
In addition if a guild or individual is facing a negative experience in world vs world either due to harassment, or lack of participation they are not constrained and are free to transfer. Free transfers will allow greater competitive environments because guilds can make the decisive decision to move servers and assist the servers that remain uncompetitive in their tier.
I am aware that free transfers can also mean having an increase in spies or trolls. This can be dealt with by maintaining transfer restrictions. For instance if someone transfers servers they cannot transfer again for another month if they insist on doing so they must be willing to pay an extremely high gem fee. Presently, it cheaper to buy an all new guild wars 2 account than it is to transfer servers.
Imagine the following scenario: you are in a server that lacks a world vs world presence as such most casual players are spending their time in the new living story update and new players that show up in world vs world immediately leave because they do not know what to do. Yet a guild in the server that wishes to change this plight is unable to recruit players that are actually in their server. Amongst the lack of participation in world vs world, the players that are spotted are already in guilds that are Pve based and have recruited these potential world vs world enthusiasts due to megaserver.
I am a fan of all modes of world vs world from ninja operations, defense, upgrade, commanding, karmatrain, open field, guild vs guild but I consistently see that it is the same guilds that own the show, it is not that world vs world is dying but rather the barrier that contrains new world vs world guilds is far too high. Free transfers will thus allow guilds to recruit players even in different servers and can grow, evolve add new faces to the GvG scene as well as stimulate world vs world participation.