If they cannot find a solution to make pvp gear unique, then I suppose they should remove the defunct morale stat and just increase the base item level to match those of the crafted sets and prototype raid sets in future, while also allowing materia effects outside of pvp.

This way it would be viable in pve as yet another bottom rung option of three-step gear ladder, but still 10 item levels behind capped tome gear and 20 behind savage. Maybe it would encourage more players to enter pvp for their gear progression. The biggest problem facing pvp is still the low participation causing queues to last for hours at times.