If morale dont make you stronger, and even materia are inactive during matches, whats the sense of PVP gear? somehow pvp gear should be better for PVP than the PVE gear or playing pvp and making pvp points wont have any incentive...

Just make separate games, one without morale and materia effects and one with Morale and materia effect for those who want to play that way or another... with different rewards for both to incentive playing one and maybe later the other option with morale and materia active.