Greetings
It's necessary, like it or not. In servers where one faction makes the majority of the community, thanks to Huttball, the players of that faction get to play much more and therefore, are more experienced and more importanly, much better geared.
In my server, where we Sith make up most of the population, I've hardly seen any defeats against Republicans; problably none ever since they implemented the level 50 bracket. My father, who plays Republican on the same server, tells me that, for instance, in Huttball, Republicans hardly ever pass the ball (due to lack of experience), whereas Sith do that all the time (he still hasn't reached level 50 on any character) so they are savagely defeated.
Please, before with the old and stupid "community" argument: I always say "hi all" before every battle, you know, to be friendly and stuff and you know which is the "community feeling" I receive back? You guessed it: none (okay, that's a bit of an exaggeration, SOMETIMES someone says "hi" back). The point is that MOST people aren't more polite or nice towards their team mates just because they are from the same server.