One of the OP's premises is just faulty. True, there are only ever 1000 people on server max at any one time (or there abouts). BUT, because P99 is a free server, and has been active for a few years now, you have thousands and thousands and thousands of toons that are simply never played.
People sign up for a few days, make a few toons and then quit. No harm done to them since its free. Other people have about a ton of alts. Some innovative people created alts just to save names. Pulling numbers out of my ass, but I could easily see there being 40,000 names currently locked up.
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