What's the purpose of F R E S H? Most of the people find it more fun when everyone is "equal". This is why F R E S H (Kronos 3) always kills an old server "with Naxx on farm" (Kronos 1). It's an unpleasant situations for those who didn't have Naxx on farm on Kronos 1 (and who didn't hit the level cap indeed), but a lot of people had and are having a good time, playing on a reasonably populated and somewhat-fresh Kronos 3.
By the way, please don't blame Kronos staff for this. If not Kronos 3, another F R E S H would kill Kronos 1 - a bit slower perhaps, but it would be as empty by now.