I would like to go into detail concerning every personal issue I have with the current PvP system, however, I'm sure PvP hasn't been around too long in FF14.So I will try to be as understanding as I can...(Also have to post a few times due to limit, hope I don't disrupt the balance here.)
Now, I am coming at this from having experienced several systems of PvP in popular MMOs. Ranging from WoW's ever popular arena system with competitive rankings to Runescape and it's really boring looking (almost turn-based, can't say the same for Rs3 though) "PKing".
In my experience, not once have I seen a purely balanced PvP system on an MMO that has an integration of PvE. With that said I doubt we can ever hope for that, at least now, with FF14's recent expansion of their PvP community base. SE, I'm sure, is trying their hardest to reconcile the current issues in their system. Though with the Morale topic in mind, it all seems to be a bit of a mess...