Just wanted to add to the conversation, to capture an exchange i had with a friend about this thread, as I think they raised an interesting point. They aren't subbed right now and apparently you can't comment without sub...

Their take is that my proposal is NOT a good idea. They said rather than taking rewards away, there should be more incentive for winning, because otherwise you are risking with killing queues.

Their suggestion was that the following rewards is what MMO players care about:
GOOD gear
Mounts
Minions

So something from that list would be good. They also said titles are terrible rewards.

There was another conversation that I was part of recently, that it would be great if it was possible to get raid level gear via pvp. And I think that would also make good rewards.