Free market economics is very successful if the goal is to maximize profits across the board. However, free market economics assumes that the maximized profits are passed on to the consumer through wages.
That is not the case here. We don't get ANYTHING if our server becomes unplayable due to overcrowding. We have invested a lot of time and money into this game, and if it gets bad enough, we have to choose to either ditch the investment, or pay more to gamble on a different server (losing the invested time with the guild).
The way it will "work out" is the free market will cause a number of people to leave the game, others will pay for transfers, and the rest will continue to play in a poorer environment.
Note again that we get NOTHING -- the extra money Blizzard is making from transfers and delayed upgrading doesn't go back into the game "market," it goes to shareholders in real life.
Now, I'm not claiming that Blizzard is evil -- I don't know when or if they'll upgrade our server or stop allowing new transfers. What I DO know, is that a free market designed to get the maximum cash profit out of minimum quality of service won't do us ANY good in the long run!