The problem is that BG believes XP/LvLs loss is what people don't like. If his assumption is wrong and people generally don't like being attacked and defeated, then the XP Loss removal will create much more problems for levellers and pvp'ers, because the number of attacks will increase significantly. Now many players are afraid to get on the BB for attacking other players, because "evil pvp'ers will tear them apart there". The situation will be worse and they will have to change many things again. I just want to say that hitting hourly "XP protected" players yielded the same results as with "XP loss".
Well, yeah.
People will say they now cannot punish anyone for stealing their gold, and I bet many more will say losing some "PvP XP" (or whatever other name they come up with) isn't enough of a "lesson" to the player. That's just one of the many that this new system will bring
Once this "new, exclusive" prizes come to play, and give a player an edge over the others, people will rant about being in an uneven field. Once the prizes drop to the point where they're not profitable or give little satisfaction, lack of new ones will create complaints (look at the Arena).
In the end, complaining never ends. It doesn't in real life, and it won't here. By removing XP Loss you're just creating a different topic to complain about.