The problem with playing PVP in FFXIV is that it is not very rewarding. You technically have to win thousands of times in order to reach the max level. Players are already complaining about the atma/animus. Once they found out that PVP is much harder, they just quit before seriously trying. Unless, of course, there is an easy way to reach max level (wintrading).

I really don't care if increasing the XP wound result to a large influx of r40 players. This way, everybody playing in lvl50 would be r40. Everybody would be on equal standing. Almost everyone would have identical gear. It will all boil down to skill. Wouldn't it be more fun knowing that both teams have equal odds of winning?