Although I agree with the original post I also understand lowering the number of large clan servers. This will have most players be in one place which will encourage more interaction in the game which is a good thing.
If this is the intent allowing those who spent hundreds of hours growing, upstatting, eldering to transfer there dragons to the new large clan server would be an acceptable solution. I understand that it is a lot of work to transfer dragons and this might even cause 1.0.1 to be delayed, but as we have seen a delay is better then people quiting because they feel their time was waisted without the dev team caring.
If the intent is to make everyone restart at the same level on a new server, then just do a server wipe. This would still cause a huge uproar like is currently going on but it would be fair for all. Hard to say what is the best for everyone but just forcing large clans to move without consideration for their time is not the right play.