This is unhealthy for any private server, I believe, since if you are not premading, you know for sure you will join the losing team if both sides have 1 premade group, which is the usual thing to happen. This also makes any newcomer to pvp unwelcome to join their team. This also impacts honor gain in a extreme way, as shown on the pictures I will attach that I took today, less than 24 hrs after the reset.
Removing premade que will allow noobs to join geared and experienced players for both sides, making more likely to get balanced teams, with more RNG on the team you get rather than system manipulation. Since Turtle wow has a que tool for everyone to use, anywhere on the game, manipulating the que will be much harder, therefore more balanced. Honor gain will also balance out, since there wont be a group gaining extreme amounts of honor while the others stay behind with no chance to catch up.
Maybe this could be reverted when more people join this great server, I think it should stay removed but I guess you will find out when the time comes. Cheers.