My team has made it a rule that if we encounter Naked or Craft Gear Eso grinders in 4 vs 4 Premade PVP we wait at least 5 minutes before killing them.
We basically /sundropdance until the 5min mark and then proceed to kill them. Sometimes we even wait longer depending on if it is the same group farming.
We actually encouraged a few Eso farmers to fight us back while others seemed to just stop or leave when they see us.
I say Until Squarenix fixes the problem we should do our part as a PVP community and just wait out the timer until the very last second to discourage this kind of behavior.