Thoughts on PVP and the economy

I was excited when I heard Yoshi say that PVP would revitalize FFXIV's economy. However now it seems like the economy is crashing. Crafted PVP gear sold well for about a week, now its prices are very low. Then I found out the quest for CT gives out an IV materia, and watched the materia makets crash. Since the housing prices are so high, no one wants to buy anything. Tome mats are a lot easier to get in 2.1, flooding the tome material market.

It seemed to me like there was no hope for the economy of 2.1, until I overheard that it it possible to meld materia to PVP gear. Is this true? I also heard that you can meld materia to ilvl 90 PVP gear? The stat caps for melding materia onto an ilvl 90 gear would have to be much higher than the stat caps for stuff like Vanya gear. I could easily imagine it taking 5 penta-melded IV materia to cap a stat for ilvl 90 gear. If penta IV melded PVP gear is BIS, I could easily see the materia market rebounding.