I'm also heavily in favor of either making PVP materia applicable in all types of pvp content (preferred) or removing it entirely. Likewise with morale, though I feel the latter could have interesting ramifications in future patches as the game becomes more expansive, and it'd be something you'd choose to re-add later if it was removed now.

PvP gear needs to be more than glamour. While I understand that new players shouldn't be at a disadvantage, players who dedicate themselves to pvp - much like pve - would like to see the reeards they get provide incremental improvements to their character.

In order to make minimalist changes to morale while still implementing it, I also suggest having it increase tp/mp, or increase the speed at which the Adrenaline bar fills.