No it wouldn't. It may effectively eliminate incentive for some players to do Frontline. But it wouldn't (as you wrongly suggest) eliminate ANY incentive. Think carefully before you make absolute statements.
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This is exactly what I'm talking about. People are using Frontline to level alts. Namely DPS alts. So they are only doing it for the experience. So don't care about winning or losing. So thank you for making my point about people abusing Frontline for experience. :)
The problem is that you're basing your experience here on a system which rewards the wrong thing. Your GC may be losing because you have lots of players that are only interested in getting the experience, not winning or losing. Change the system, you change the composition of GC's by affecting the motivation of individual players.
I obviously don't have any more figures than you do, but my own anecdotal experience is that I've seen 3 afk'rs in the last half a dozen games, and we kicked those and they were swiftly replaced. This isn't some epidemic consuming frontlines, and my GC has been regularly losing the vast majority of it's matches since long before Stormblood and the buffs to XP rewards so this isn't a case of promoting poor performance.