Hell I would support a resetting hardcore server which of course is more than the low-pop whiners could stomach.
I think it might be a good idea to have "seed" servers. Say, three servers each of which resets every three months, staggered so there's a fresh one monthly. The key, though, is that when the reset happens, existing characters get to transfer to permanent servers. This is basically how the ladder seasons in Diablo II worked. It gives the reroll locusts somewhere to go and stop pestering the rest of us, and, in the PvP case, caters to people who want to level without waves of high-level gankers with nothing better to do. Additionally, it doesn't require continuously adding more and more hardware, and hopefully injects more people into current ghost-town servers.