In almost every single game since the start of time, melee have held more numbers. Your point is valid from a human nature point of view, as it's been proven time and again. However, I have never played a game where the ratio has been this lopsided, and that can be attributed to only one thing, if we establish a few knowns.
We know the player base here is well founded, and down to core players who can generally pk well enough against each other. There fore the more noobs play melee because of easy ranking isn't really a valid point.
The general knowledge of the player base is certainly much more concentrated than it ever has been. There fore we can assume that players are picking more melee because of that knowledge.
A large portion of the remaining players sit and think up power combos to run the show for a few hundred hours before deleting. There fore we can assume that power scale is certainly leaning in favor of melee.
I have examined other muds of similar style to ours, like AR, and although there certainly seems to always be a favoring toward melee characters in each game, we are in our own league when it comes to a ratio as great as ours.
melee(warrior, ranger, zerk, blademaster, monk) -5 classes @ 265 characters
hybrid(dark knight, paladin, druid, bard) - 4 classes @ 58 characters
caster/communer(cleric, invoker, battlemage, necromancer, healer, shaman) - 6 classes @ 116 characters
rogue(thief/ninja) - 2 classeas @ 49 characters
By this we can see some very obvious tendencies. Numbers don't lie, that's why we love these games. On a per class basis, melee averages 53 characters per class, while mages average 19.33. That's a 2.741:1 ratio of melee to caster. Which means we can accept the fact that FL is a melee favored game, or we can make some changes to keep things flowing, some of which I believe are on their way. However, nerfing casters spell level was not the right way to go. Balances should be made based on what players play more, not so much on theory. There are a couple reasons for this. First, you can sit here and bash your head against the wall in an argument with someone about the melee vs caster end game and who has it easier, and there will be valid points on each side and chances are you will rarely if ever win some one over in the argument. It's very easy for me to say things like, "anyone with a brain knows how much stronger the melee end game is", but I have heard top pk'ers tell me casters are stronger end game, are easier to survive with, and have less need on consumables(this last point is certainly not true). I counter this with, if being easier to survive is such a huge advantage than why are the numbers so lopsided? Which brings me to the second reason why we should balance changes on numbers. It's not relevant to us, to be honest, which side is stronger than the next. We are not a massive online game with large stakes. We are a very small mud looking to emerge once again, and to do that we need to base changes on creating CHANGE.
I'm such a poor poster, and my points I feel are so babbly. Go back to the blademaster introduction, and the major class change that took place after. Warriors got better paths, zerks got paths, rogues were around the same time, rangers paths, all of them resulted in massive buffs for the classes. Mages have received nothing in return, only massive nerfs on spell level caps, and equipment changes. With reduced playerbase it's hard to level them, and if you die without friends, well.....good luck re equiping. What takes a melee 15 minutes to start going and moving towards good equipment isn't viable on a mage. There are so so so so so so many reasons why melee dominate this game, and why there are so much more melee. From ranking, to cabal warfare, to end game content, to reequipping, to end game power,and yes, they even have a CONSUMABLE ADVANTAGE NOW. Generally a melee needs sanc/detect invis, and MAYBE flight/enlarge depending on the situation. A caster NEEDS armor, shield, flight, stone skin, protection, CURABLES(not cure blind, but CURE HEALTH), some need sanctuary, and even more. The list can go on and varies depending on the class being used. I've had countless fights at 50 over the years, and there was a time I could take my naked cleric, summon a shield, and try to get lucky on an unsanced melee. Now, fully prepped, I need to be decked with 500 ac in hopes to not take CAPS damage without a vuln.
As I said, we can have this argument over and over and over, but the numbers don't lie. It's way too lopsided.