That’s what pve servers are for.
It’s wild to me that your strongest argument against getting rid of them is “oh but my dailies!” It’s a PvP server that feels more dead than a .1% vs 99.9% server. Do you have any idea how bad that is? It’s the one PvP server left and it’s cucked.
You act like layering is the only way they can handle your hypothetical situation of the dailies. In other iterations of the game they’ve just cranked up the respawn rate of quests and mobs when they’re killed fast / items are looted fast. If a zone was SUPER bad, they could use very limited phasing for it instead too, which I still think would be a terrible idea, but at least the rest of the zones wouldn’t feel so dead as a result.
Dailies are just a stay busy activity that most people have already done and knocked out on their chars already for whatever rep they were after. Doubt the areas would be even remotely as busy as you’re making it sound.