This feature was intended for players who are truly new to UO and don't have any friends to tell them what server to play on.
We noticed a common complaint among new players who accidentally picked a shard in the wrong time zone or with a low population. Given the complexity of our game, these players really rely on veterans to teach them the ropes. If they join a server that is empty because of the time zone difference or general shard population, they have little chance of being taught how to play and ultimately sticking with the game. It was a fairly simple system to implement, and we hope it will help this category of potential UO players.
We also have a couple of other features in the pipeline that will help with the "stickyness" of UO to new players. We are focusing on quick tasks that are relatively big wins. Stay tuned for more details.