Would this help WvW population?
No. PvE would cry out so much, even if they dont use the xfer system or have any need to, and PvE runs this game not WvW.
The issue comes from T1 believe that you can have even fights only within 3 big servers, which is entirely untrue. However to evenly spread out between so many servers is asking a bit much of the amazingly smart internet people. Anet should just consolidate or create separate and fewer WvW servers (12? 15?)
While fewer WvW servers might spread the pop out some the que times would be horrendous and the ques already sux
the higher ranked thing would probably be a better solution although as you said people would cry rivers whether they used the function or not
Maybe we would see the same 300 page thread we saw when Ascended gear was introduced