I really like this idea for non-dungeon content (even without taking population into consideration).
I know, personally, I was looking forward to playing one of my 2 favorite races during EA (Elf/Halfling) but Wild's End lacking so much in the way of quests and solo'able content (compared to Thronefast/Avendyr's Pass) forced me to play other races which I'm not really into at the current state of the game's character customization (that I know will change later). I'll give Wild's End another try when the Druid comes out next month (because that is the class I plan on playing); but this idea likely would've kept me playing in Wilds End. (I don't have several hours a night to do group content but love the game even in it's infancy.)
@Darch
I'd guess you know, but Wizards now can portal a group between Wild's End and Thronefast. While WE can be a bit dead in off hours, it's not at all hard to get a quick teleport to TF during prime time. So you can make an Elf or Halfling char there and easily move to TF at lvl 1 to level up.