While you’re accurately stating that, it also isn’t that simple. Blizzard was also concerned about the tourist problem - the players that play Retail that also wanted to stop by to see and experience Classic.
I, myself, was a tourist to just see the game for a bit then went back to Retail (since I played Classic when it was just Warcraft).
There was no right or wrong way to do the balancing. If they set population caps of 1750 accounts H and 1750 accounts alliance per server, what happens if I want my friend to come play? We’re at the account cap.
Do you have a dynamic account cap that’s the last 7-28 days? How do you communicate to the players that X realm has X slots available?
Does the account cap count everyone who has even made a character? (So, for example, if I had a bunch of friends that played retail and I played H on a server, could I just have them all make level 1 characters as Alliance on the server to skew the population cap?)
You’re actually getting the most authentic Classic experience, really. The slowly skewing servers (this happened in regular WoW too, look at Cho’gall) it’s just amplified now.
Back in 2005, information just didn’t flow like it does now.
And while I do see the complains about mega servers, they do have servers without layers that you could transfer to, if you were so inclined to have the “more authentic” experience you desire.
I think that’s the best balance Blizzard can strike. Servers with layers (with the option to transfer off of them) to servers without layers.