Before I launched the War and Peace Servers I proposed a solution with PvE and PvP zones. It didn't generate enough interest.
When you launched Peace server (war was already started) the solution with a PVE and PVE zones didn't get interest mostly because most people already left and signed out of the forums. Also the way it was suggested is that PVP areas would be equal to PVE areas with no reason to be in a PVP area.
Some players wanted PvE and PvP zones but with advantages to PvP zones. Taking into consideration that 75% to 80% of our players don't want PvP at all this was not a viable solution.
These 2 quotes go very hand in and on HOW to do it, and not just what you are doing it. Making a PVP area the only place to get xyz resources sounds good to a few PVP styles, but most players would hate this, being forced to trade with the PVPers.
What needs to be done for this to work, is a mix. 1)You have PVP areas that offers advantages for being in that area, because of the great risk. Key is that this advantage must not come at the cost of something you simply can not do in the PVE areas. Like special resource (mounts, or item style resources). Then ALSO MUST go with it is a PVE area which is harsh and hard to do with advantages to that area also. So both sides have bonus and negative. So in this special PVE area you have a very very hard lifestyle but gain maybe 2x resources or 2x skill gain. Apply same logic to the PVP areas. This way no one is left out and there gives a reason for people to have added risk.
You must look at risk vs reward.
Next you must take with a grain of salt when people say they don't want something because it would be harder. You have to look at if you give someone everything, there is nothing to do. Let them play the game for something. You need to progress and build up to being strong enough to do harder and more teamwork focused things. When people are giving others free carts, food, tools, weapons armor etc etc. You have a short burst of "This is awesome I got everything" but they strive for nothing and quit the game.
I promise you based on the people that first started this game you would have had more people on War server than you would have had on Peace but only at the start. You have the old forums you remember how people were asking for more war type stuff? The issue was and is, you lack anything for war players to do. You are promoting gank style PVP. What else is there on PVP? You can't claim contested areas, you can't siege bases, you can't have tribe wars, you can't even have a group vs group because there are NO GROUPS!
You made the PVP server a gankfest because you offer nothing for people that are warriors to do.
Next is you have PVE, even warriors who are split for PVP and PVE, you offer very little in the way of PVE. The PVE in this game is limited and uneventful. Mobs/Animals are highly predictable and easy to defeat solo or with 1 other player. Nothing for warriors to really sink into and do.
Most issues you look at are multi level, if you don't have all the parts in place even good parts of a good plan fail. Having a great crafting system as you do, without a reason to use the crafted items makes the whole system fail.