The funny thing is... there's a huge thread on the JP forum about "How to make PVP more popular", so it's struggling, even there...

And it's interesting that you'd bring up Ultimate weapons - because while these are reserved as exclusive for people who attempt and clear the fight, they are by no means seasonal or limited. And that's what PVP rewards does wrong. If Ultimate weapons were only given to say, the first 10 teams to clear across a data center (that would be 80 people, so close to the amount of a Feast leaderboard standing) raiders would lose. their. minds. There would definitely be competition - but to the detriment of health/sleep/work/school/relationships.

Plus, when you limit something like this, to only a select few, people will do everything they can to get that shiny thing, including buying their way to the top or using third party software programs to cheat. So no, PVP is not some amazing echelon of skill. That's not to say that the players who love it aren't skilled - many are, but don't think for a minute that some people won't resort to TOS-breaking measures to make up for the skill they lack.