Actually, the "laggy, bugged to hell" part you mentioned WAS fixed by the "make it even worse" part you mentioned.

So it's more like a trade off. You EITHER suffer lag and bugs, OR you suffer long queue time or having to find 2 more people on your server to team with you.

How one would choose depends on how active a server is. I personally don't mind the current state as I can easily get 2 groupmates to do it with me. Or even if not, getting people from my server is not hard, either. Most people who can't play are usually from inactive servers like yourself, which I can understand why it would be a problem. But you have to understand that the change was made in respond to complaints about lag from everyone. The lag was most likely caused by the fact that people from multiple servers were in 1 team, and most of the time interserver teams suffer an disadvantage because of that.

The best solution would be having current matchmaking as default, but also give an option for people to look for teammate cross server. However, I'm not sure if this could even be applied/complement.