My two bobs worth:
First lets break down the two discussion points as they are different.
Player activity
I take this as a measure of opportunity for players to interact.
Much of what Zelk has said is right for the purposes of increasing player activity.
We have had good success recently in just organising player driven quests which has greatly assisted my enjoyment and others apparently.
I actually think the 2PC rule DID work in some instances here as we have players alts joining us for RP where their main chars would be on an otherwise empty other server, but then another time during the week they have a session on that server. So maybe an incremental improvement.
However we need to realise organised events are normally once a week and people often want to play more often than that, to just log in when the opportunity in our busy lives allows and find people there to RP with...and so we move onto density.
Player density
I take this as an equation of density =
number of players vs geography they are spread across.
For the last while (year) I often see one player on the server I'm on (me) and maybe a few others spread across 3 other servers. Often we are alone and unable to meet up as moving servers for an hour or two's RP and then having to move back across servers to meet up with others you have a once a week session on isn't worthwhile, and perhaps doesn't sit with us well (we can suspend belief to run across a server for RP, but not accross multiple servers). I've also seen a few times recently one (or even two!) DMs on other servers with maybe one PC where there are 2 or three on the server I'm on.
I just wanna log in and see 4 people on my server, rather than 4 people on 3 servers!

It's not even about more DMs and DMed sessions, it's just about being able to RP adventure/taverns/training/politics with an other PC rather than chat over inter-server tells.
((PS - greater density will likely result in more opportunities for organisation as instead of 3 people being on a server and therefore able to join a session - not so viable given RL means people miss them, there may 5 - more viable))
So what levers do we have to effect the above equation.
Lever 1 - increase number of players
PR and advertisement. Obvious. I agree. BUt we must also all be realistic that even if this is done incredibly well, we are talking about a small number of new players just because we're playing an (awesome) niche in a 7(?) year old game. Plus having low density will impact on the ability to retain these new players with all the best intentions, as they don't want to log into somewhere where there aren't other people to play with. Yes organisation will help, but again, people want to log in opportunistically as well as once a week.
Lever 2a - increase ability for quick movement within servers
Lets increase opportunity for 'density-at-a-point' so I don't (have to - if you want to go nuts) spend 30mins of my 2 hour session running across a server to meet others before playing. Again, organisation is fine, but some people play once a week and some play many times and yo just cant always be logging in together at the same place. I like the idea above about portals and boats and so on.
TSM for example would be Rivermoot (river) - Silverymoon (river) - Fourthpeak (join patrol) - Feldbarr (join patrol) are the four major jump points for adventure. BG may be BG, Beregost, FAI and ? Short of giving players OOC teleport devices it's perhaps the best option.
Solution 2b - reduce the number of servers
I think there has been some avoiding of this in favour of incremental changes. But I just cant see us getting away from it as a major thing that will support the success of a range of other things such as those zelk has proposed (i acknowledge that you, zelk, personally do not support this). We approved the development of 4 servers for more players than we have now.
Potentially:
Two servers = all players (can) have a PC on all servers under 2 PC rule
Two servers = DMs can have a PC (i think we need to allow a few 'good standing' folk to DM where they play...but maybe a bridge too far right now)
Two servers = marginally less tech support and other admin support
Two servers = the opportunity to add some (script cleared) areas/content of decommissioned servers into the two remaining ones?
Two servers = perhaps the loss of several contributors from ALFA and some angry people who will stay but be seriously irritated. Honestly very unfortunate and very understandable. But I feel that the value of sustainability of ALFA as a whole, outweighs the value of the sustainability of two servers. I would hope that given the right discussion that the effected people could see that. Sometimes mercenary decisions are required in situations of risk.
We'll never get to, or should target, a single server MMO numbers or style.
This change in server numbers could be enacted at the next low point of support for those servers, rather than imposed arbitrarily, to soften the blow.
ALFA governance (proposal process, server evaluation process, DMA approval etc) is designed for increasing servers to accommodate increasing players. We didn't give the admin the process to do the reverse an reduce servers (which effects almost all portfolios) with reducing players. So there is no one portfolio who seems responsible for this decision, i suggested a change in an LA plaform but was strongly disabused of the notion that the Lead Admin had any role in this sort of decision.
As such, I may consider using rotku's agreed format for a formal proposal to admin related to this. I think it's is oft discussed but forum discussion generally results in nothing but just that. That process allows for a proposal by a number of ALFAans (rather than individuals posting) and genuine discussion of a proposal with those who support it, and those who are effected by it. It could also, perhaps put the issue to bed a little after there is a firm decision around a firm proposal.
Summery:
1) Activity - So I think zelks suggestions are good for increasing player activity. Foams new forum suite will be amazing in helping achieve that as well.
2) Density - I think we need to do something more fundamental about density however....not just advertising.
Value of Faerun
I love the setting. Plenty of mystery can be found.
Especially as there is nothing to stop our DMs changing:
- A new dwarven kingdoms has been found in the north...but this one is strange, different from everything we knew before
- - A rift has formed and strange beings are spilling out of it along with something that is battling the gods
- Prayers for clerics from three key gods go unanswered and chaos/war/grief between gods of related portfolios ensues - why?
- Almost all orcs in the north are suddenly undead but controlled....
- Turning off the day night cycle and making it permanently night - player go figure out why and how
- Bane dies
- After elections or purchased lordships across western faerun, a new order seems to be being imposed. After a while only the Gem and Beregost have retained complete independence with Baldurs Gate fraught with divisions between new and old dukes.
playing Nathaniel Ward - Paladin of the Morninglord and devout of Torm (cookie cutter and proud of it)