Needs to happen.
If South and North America merge, and Asia and Oceania merge, all 4 confederations will have 50-60 national teams.
Of course they'll be wildly different in terms of population sizes, but still, each confederation would have 50-60 national teams. Who do Mexico have more in common with, Colombia or Canada? Who does New Zealand have more in common with Australia or Tonga?
You can still have the Gold Cup and the Copa America, just have them in Year 1 then the Copa Panamerica in Year 2 of the 4 year cycle. Likewise you could have an Oceania Cup, an Arab Nations Cup, etc in Year 1 followed by the Asian Cup in Year 2.
The argument against merging Asia and Oceania and North and South America has always been it's logistically impossible to get all those teams and clubs flying across the the globe. But you can have sub groups before the big ticket events.