Throw awat the iLv system, implement a PvE Rank system.

[Daenerys_Sedai]

Please look into implementing a PvE ranking system instead.

Exactly how would this work? From what I can tell, it would all come down to a grind. PvP has a ranking system, and that's mostly grinding too. iLvl isn't really any different.
That being said, I don't know of anyone who would conflate iLvl to mean skill.