Despite what most people will say on these forums, I believe that PVP is an integral part of MMORPG success. After the basis of the system is developed, it provides COUNTLESS hours of replayable content, basically a goldmine for MMORPG developers.
I have never been a huge PVP enthusiast, but it still fulfilled an important part of my prolonged stay in other MMORPGS.4
FFXIV does not have a good replayable factor compared to many other MMORPGs I've played. A solid PVP system would give players something to do when they're between content of patches, or burnt out on the current grind.
Reasons (in my opinion) why PVP has failed in FFIXV:
Grand company vs Grand company vs Grand company
We hate this. Please change it. My heart sunk when you announced that it was staying. It makes no sense. It divides friends. FFA style (1v1v1) PVP is awful. It is acceptable for a quirky side-style pvp system, but serves as a pitiful core base of large scale PVP.
Poor PVP balance
Despite numerous PVP balances -- the system just does not feel like it works. Quirky secondary "pvp" actions and questionable balance features (auto interruption on casters) feel like an afterthought to mitigate the massive pvp imbalances.
Perhaps consider adding a third "disciples" category, whose function is solely for PVP content?
Arenas suck
The forced healer, tank, DPS DPS requirement is an afterthought used to make sure tanks have a spot in the fray. Win trading undermined arenas integrity from the get-go and it has never recovered. Combined with this next point, arenas are dead.
PVP equipment
For glamour only? The only actual decent use this equipment serves is for the wolves den which is dead content beyond revival. To combat the complexity of gear balance in PVP, the imposed ilevel 80 cap makes no sense and is a complete contradiction to morale.
Large queue times
Self explanatory. Seemingly unmitigated by the bribery of soldiery and poetics in the daily roulette.
Questionable objectives in Frontlines
Capping objectives (flags) through outnumbering the amount of defending players currently there led to boring repetitive strategies adopted by pick up groups.
Individually, a player is unable to defend or assault a node, even if just for a few moments to call for back up.
All in all, the Final Fantasy crowd has always been a hard crowd to get onto the PVP train. I am not surprised that PVP has failed up to now. It feels as though PVP has been implemented with 0 foresight.
Please, I implore you to take a hard look at FFXIV PVP again and make some drastic changes. The fundamentals are there -- an action based combat system with gorgeous visuals and decisive moments that can make out break an outcome of a skirmish. But, the execution has been poor since the beginning and doesn't look like it will change any time soon.