Even if what the OP predicts was true (which I doubt), who cares? This is a game that is designed for players who want to RvR not to dominate the entire industry. That's why the Foundational Principle that "RvR isn't the end game, it's the only game" is the 2nd FP that was published: it's that important to the game.
Mark didn't set out in 2013 to make a PvE game with tacked on RvR, and he didn't raise over $2 million from thousands of backers to make a game like that.
If he broke that FP now, first thing he'd have to do is give back a large amount of the game's funding in refunds including to me. It's extremely doubtful the money that would be left would be enough to actually make a quality PvE/RvR game without selling the studio to EA again.
For those that have forgotten FP #2 go refresh your memory here
The small s servers can even be smaller than an entire island. I.e. a very large island could be broken into several servers which players would cross between seamlessly. So island 1 could consist of servers A, B, and C while island 2 contains server D and E.