So, Yoshida wanted us to talk about PvP but there is no proper tags for it yet. Hopefully these will do.
What I want to talk about is PvP balance. PvP in MMORPG's has always been quite a hopeless concept for few important reasons:
A) The outcome of the encounter is not determined by merely player skill, but factors such as player equipment, level, skill set-up and class. As the most important thing about PvP is balance, the core nature of MMORPG's (freedom) is in conflict with a fair PvP setting, as the fact is that the more freedom you give to the players, the harder it is to control that the encounters are fair.
B) PvE has different rules and allows for more freedom. MMORPG's in general have been designed with PvE in mind, first of all, because of the freedom they offer.
With these observations as the basis for the discussion, I would like to present some feedback regarding what Yoshida could- should do, if he wants to make sure that the PvP environment is fair and just.
First of all, there needs to be as few factors unrelated to player skill as possible in a PvP encounter. Nobody likes losing but everybody hates losing not because the opponent was better than you, but because he had better equipment or was higher level... or even worse, had friends helping him. This is completely unacceptable if the director wants the PvP in this game to be ever taken seriously.
Thus it should be so that in a PvP setting, equipment is purely cosmetic, and player stats are determined by the developers so that everyone is on an equal ground when the encounter begins. Further, the developers should try to make it so the players are always at the same rank (via capping the fights like in FINAL FANTASY XI, or something else). The skills in PvP setting should be balanced completely different from the skills in PvE setting. If you make it so adjusting skills in PvE changes the skills in PvP as well, one playstyle is always going to suffer because of it. Please keep them separate.
Lastly, the developers should be able to control where the encounter takes place and with what rules. This means, that no world PvP should exist, and that every PvP encounter needs to happen in a controlled environment. This way, there will always be equal number of opponents and everyone is prepared accordingly and not "taken by surprise".
Now, I also want to touch a bit on what I felt was the downside of PvP in FINAL FANTASY XI. I think there are two primary reasons for the lack of popularity for the systems after some time:
1) There were no proper incentives to keep playing after people no longer did it "for fun".
2) There was no active developer involvement after some time (Ballista Royale was great, but we never got anything like it after the first tournament sadly).
Solving 1) should be the hardest problem to tackle. As equipment shouldn't make a difference, there needs to be something else for the players to aim for. Ladder system, player titles, cosmetic stuff... there are many options, but they must not affect the balance.
Here's also an alternative to the ideas proposed above:
In the game "Defense of the Ancients", which is a PvP game, there is equipment you can buy, as well as levels and skills you can gain. Why it is balanced is because everyone always starts at the same point (level 1, no money, no equipment, one skill to use) and goes up from there. There is even some PvE involved as the "critters" you kill give you money and EXP to level up, as well as help you conquer and destroy the enemy base. This isn't true in MMO's as the players start the battle from an unfair position, with someone having better equipment or level from the beginning. You could use something like that game does to spice up the PvP as well as make it differ from the norm. If you want to make equipment matter, make it so everyone starts from an equal ground and has the same chance to obtain the equipment in the encounter, or level up, or whatever. That's one possible approach.