What DraGun is trying to say, for an example in a few years graal will obviously have more people. But if the players make squads, guilds, and gangs and quit but never disband, then choices of names are dwindling to the point where there's only certain names you can choose.
So he wants to keep this from happening by disbanding guilds that are obviously dead/inactive for a long period of time to expand the choices of names for new players.