Hi,
I am in WN1 when the merger first occurred, we had the same reaction to all of you, overcrowding, no resources, and a lot of players quit. We have been fighting the other Alliances, and all the W2 alliance have made a coalition to take on the stronger bullies. It seems to be working at the moment, and I dont know why, but there is definitely more room here now. Still no lakes :-) but there are so many inactive players you can plunder other cities to your hearts content. Plenty of food there. lol
So, I suggest you stick it out, once the 7 days truce ends, it will be better.