There is no way that this game can become financially stable again on its current population. There are maybe at best a few hundred actives on both servers now compared to the 10,000 at launch, and estimated 100,000 that actually wanted to try the game. Though a wipe may cause a dent in AV PR department and in AV's subsribers within the current community, a wipe really is the only way to get this game's population back where it needs to be.
At present, the meta game for darkfall is in complete disarray. Very few factions presently exist, the game is painfully depopulated, and any clan who joins the game is completely crushed by the few people in power. These events are the result of massive stagnation within the game, whereby very few "factor" alliances exist. This overcentralization of power ingame not only forces people to fight the same people every day (to the point that people quit the game), but also makes every new face/clan that joins the game an instant target for extermination.
Under a healthy meta game, enough conflict exist among the higher echelons of the game, that lower ranking alliances are able to build up until they are ready to compete. Under DF however, there is not enough competition/decentralization of control among the higher ranking players, and as such, weaker players are constantly under threat of attack.
When low ranking alliances are constantly having to focus more on the the defensive, always knowing they could be wiped out the next day by an alliance they have no hope of defeating, there is little time available for expansion. In other words, clan leaders become disenfranchised with the whole process and just quit. This is where we are now and only by having a fresh server without the possibility of transfers, or just wiping everything flat out, can DF hope to restart its meta game.
Whenever a server is freshly launched, a building phase occurs where players settle across the world, form their clans/alliances, and start building a home. This is argueably the most important part of a game as this is where most of the game's ingame factions will originate. New factions will innevatably be created in the futures as wars and guild politics require, but ultimately, a game sees its biggest surge of meta factions during this time.
Without a wipe, seasoned vets are able to essentially skip the build up phase beyond the acquisition of basic materials for transportation and gear. This means that vets are able to attack newly created alliances right away, well before the alliances are fully functional and with a hugh stat gap to boast.
By having a wipe however, even seasoned vets will have to level characters, thereby extending the buildup phase and also reducing the gap in strength between these "initial" alliances and the vets who were already established before launch.
In otherwords, the point of a wipe is to ultimately lengthen the build up phase, so higher quantity and better organized alliances can be created to power the game's meta game.