However, I believe the intention is that everyone is welcome in either CF-N or CF-E and the larger / active villages are promoted into CF.
Here's I believe the issue (note: I wasn't in any of the talks to decide this, so I'm just surmising):
We are closely arriving at the second stage of the game where the biggest threat is alliance ganks. You survive this phase by being a serious enough threat to deter the ganking you or pray to stay under the radar. For a variety of reasons, it seems we've shown up on the radar of a couple of top twenty alliances so the latter choice isn't much of an option anymore.
As it stands now, none of the CF alliances have enough gravitas to scare someone off. The goal is to stack one allianceenough that some of the other alliances are given pause before catapulting someone into a farm. Such an alliance is in some ways only as strong as it's weakest member, so a decision was made to boot some people from CF and invite them into one of the other alliances. Were the criteria arbirtary? Probably, I don't really know.
I would suggest however, that patience is called for while all this shakes out over the next day or so, because while it does probably leave a sour taste in the mouth, I do believe the end result will be beneficial for all.