Personally, I have my own guild. I made it on Halloween 2010 and its called "GStar". Its a very inactive guild and I have predicted that more than half the ppl in my guild are going to leave just because they want to make their own guild (for fun).

I'm just going to be staying in my guild. The guild buffs aren't that great.

Larger guilds = More people on
More people on = More GP gain since it raises just for people being on + people lving up
More GP = Higher lv guild skills
Higher lv guild skills = Faster lving ect

So in the end... The noobs that make their own guild just for a "name" are going to be in the low end of the bunch still.
Flooded guilds will still be best.

Yeah, but out of this chaos, only those that are strongest will arise. The rest just fade into the background.