UpdateRob Clendenin sent me this:
Blizzard has done free transfers from hi population servers to low population servers for free for the last year or so, and will continue to do so (from PVE -> PVE, PVP->PVP) for high population servers (as far as I know). This service is akin to the EQ character transfer service (which cost $40) and would allow someone like me (if I started playing WOW again) to take my character from a realm my friends dont play on anymore to one the new server they do play on, which would also, in my situation move my character from a PVP server to a PVE server.
As long as they continue to allow free character transfers like they have before there really is no valid complaint about a paid transfer.
Point taken, and I did not realize that free transfer was available from high to low population servers.
I still think, though, that given the problems they've had in the last year, and the profit the game has made, that they could do better than $25 for a transfer. Much better.