I think the only way God could relate to his/her creation is to be a part of it (saying his/her because 'it' doesnt sound right). So to myself, as I read Merton tonight, it would only make sense for God, to be born in the flesh in some form. To say that could only be done, in one form, one time, or even limited to certain eras or millennium also sounds limiting. I personally believe if God willed it enough, could be born, in several places at once, in one lifetime, in various parts if wanted to, and experience that way too. Like walking around "God was one of us" like the song, but like a stranger who never reveals his/her secret position.
I also think that it'd be wrong to say that if God chose to be rich on earth, it'd be a bad thing. Yes, there would be limitations because God wouldn't have to worry about food or shelter, or getting a job, or going to school, and those sorts of things that are average everyday pains in the ass for people. Gas prices go up and up and God is forced to take the bus if isnt rich. However, if God were born rich, like say, ran Microsoft, then could do things like donate to charities, help with the cause of world hunger, HIV infection and other things. That wouldnt be a bad thing at all. That would at least be a positive thing.
Of course, God being born poor then could understand what this 'suffering' deal is, that occurs with people. Also, I think if God did do that, allowed to be poor and suffer, maybe a homeless vagabond on the street, could also understand loneliness and despair of the worst sort, or say when people would spit on him/her as a homeless person, or call the police on him for loitering, would then understand better why people lose faith in "God" when in such a state of being. Or perhaps go totally mad, as there are a lot of mentally ill people who live on the street and arent getting medical care. Not all of them are drug addicts and whinos. But people do, get creeped out by them and run off.
There was a woman I met one day who's husband, out of the blue said, he wanted to go and live on the street for a few months. He did do it, live on the street, because he wanted to 'understand' what it was like to be homeless. Now granted, anytime in this game, he could've turned back home, cause technically he wasn't a homeless person for real. But he still went through the motions of this whole thing, spent three months as a homeless person, so he would know and understand, firsthand, what that was like. And of course, along the way, he met other homeless people, so he was able to see them in a different light, then simply, phantoms on the street that people look away from quickly as not to 'stare' at them, or be seen.
While rich or poor, is a duality, an illusion in its own way, still these positions in life and society have a lot to do with who we can be. And really, either position can be used for better or worse. I think God would choose both, and many phases inbetween to be able to experience humanity, if had the ability, and really, if there are no limitations, must have the ability to manifest in that manner.