The only thing this chat restriction does is give a significant edge to premade groups, even more so if they also have voice communication. In fact the difference is so massive i have seen wipes from premades happen in less than 30 seconds. Considering there's no gear difference since everyone is synced, this disparity comes from organization alone.

Please put back normal chat to give PUG groups a chance against premades, PvP is supposed to be a group effort not a mindless blowout.