I think it was put on indefinite hold because of such a negative response from the poll (which has been discontinued, but the way they were doing it was dumb).
unfortunately, cross server matsuri and arena give all cross server events a really bad name. I think cross server sage wouldnt' have been so bad, because matsuri and arena both suffer from matching problems but everyone has to register for sage at the same time, so optimal matches can be made. The real problem is sage itself, it's the only reliable way to obtain advanced runes. If you're in the top 3 already, you definitely dont' want cross server sage.
If you're not in the top 3, cross server sage could be good for you, but these same people get poor matchups in matsuri and feel that cross server sage they would just be food for someone else. That being said, I really wish they could implement cross server sage for some servers and not all servers, especially ones that can't get sage even started.
I'm worried about the state of the game, even my own server - the 156, 159, 162 merge gets on average 7-10 people for each sage team, so we're pretty close to not starting sage (not sure what the minimum is?), and many of the people in sage are in my group and get mad when i kill them. Sage is really ONLY an event I do to get adv runes, not because it's fun at all...