A merge is mandatory like many says, but im also unsure on the right process. We cannot limit K1 items or progress, that would be a non sense. I do think that bringing the whole population from K2 to K1 would be the best way. Those who are lvling prior to lvl 60 wont care much. Not everybody wants to be the first raid group to kill X boss. Most aren't tryhard hardcore player who runs after after that kind of achievement.
what I enjoyed the most was leveling from 1 to 60, by running all those 5 men dungeons, then at lvl 60, running Strat, UBRS, scholo and such places for months. Then grinding BG honors for months as well. Then rerolling a new character from lvl 1 for the fun of trying out a new classe.
Player like me, is probably a good example of a majority of casual players. I couldnt care less of the AQ releasing State. As long as population is high enough that I can find the group i need for running that X dungeon, that population is high enough that I can live world PVP at a reasonable state, that it is high enough that i can find what i need on AH at a reasonable price, and also high enough that I can sell the items and materials I find and gather. That's all I care really. and im sure most casual players have the same opinions than I do.
As long as we dont feel lonely questing, looting dungeons, and etc. We will all be fine.