When your Realm chat, which new players are very likely to think means everyone in your realm (why wouldn't they?) is dead, it makes your game look dead.
People in the warzone can learn not to rely on realm chat for information. But new players who just talk to themselves in realm chat will often never get as far as the warzone.
Even if its just full of spam random convos and misleading information, at least it gives new players the ability to see that there are other long term high level players around. Ironskins example is a good one, the cut of realm chat from the warzone divides newbies from the experienced players who's help they may need, as well as a feeling of activity in game.
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Faith 50 Barb Faithless 50 Lock
Umaril 45 Conju Kailas 45 Marks Pel 45 Knight
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