Here is a comprehensive system to balance PVP as much as possible between all competing interests - the hardcore pvper, the casual interested rating hound, and the leveler.
HITS
There will be two ranges. The old +/- 10 level range (and +/-5 for sub level 200) and the bracket range.
There will also be the new hit range - the ability to hit up and down the entire length of the bracket.
Only players who are on the ladder of a given bracket will have access to this range, and they will only be able to target other players on the ladder with that range.
ALL attacks will cause EXP loss, dependent on stamina and EXP locks.
ALL attacks will be bountyable as per current mechanics. This of course excludes GvG.
RATING
Gloat will be removed.
Honor will be removed, but the rating gain of all attacks will be reduced.
Updated: Rating Exchange In Combat
Option 1 - Floors and Ceilings (this most closely represents previous systems in place in the game)
A 100 stam hit will grant 50 rating at maximum, 10 at minimum, depending on rating difference.
A 10 stam hit will grant 10 rating maximum, 1 rating at minimum, depending on rating difference. Rating floors (+/- 300 rating) will be enforced such that if a player has 300 less rating than you, they cannot be defeated for further rating gain.
If a player has 300 more rating than you, you cannot gain rating from them for any reason.
Option 2 - Similarity Indexes
Credit to leos3000 and Khanate, both of whom have proposed this system or very similar ones:
People who have The same exact rating would have the biggest transfers when competing. (30 points per hit)
People + or - 100 points of each other would be in the next transfer range (20 points per hit)
Next would be + or - 101-250 points (10 points per hit)
Last would be + or - 251-500 points (this would be the smallest transfer of points 5 per hit)
If a person is + or - more then 500 points from their target they get 0 points, meaning it doesnt matter if they have a rating of 1000 or a rating of 1501, there is no transfer.
Note that both systems have pros and cons, but in the final analysis either one would be acceptable.
Floors have an advantage of limiting farming, period.
Similarity Indexes have the major advantage of allowing anyone to combat anyone they choose for rating exchange, up to a point.
Ladders
Ladders will be reduced to 25 players post level 400.
The top 5 will be awarded 2 tokens, and 1st through 3rd will be awarded 8 for 1st place, 5 for 2nd place and 3 for 3rd place.
In order to appear on the ladder, you must successfully initiate a combat and win. Players will no longer appear on the ladder as a result of being attacked, whether they win the combat or not.
EDIT:
The top 10 will be awarded a broken token. Almost no range has enough activity to support awarding the entire ladder. (Updated 12/30/10)
Bounty Board
The board will generate 3 rating per win versus at target at maximum with 10 stam, scaling down to 1 rating as appropriate for greater rating differences. 100 stams would generate between 1 and 10 rating exchange.
Rating exchange will be increased to include rating transfer between the brackets immediately above and below the bracket the target inhabits (so if I am in the 500-599 range, I can exchange rating with the 400-499 range and the 600-699 range). A rating penalty of 1 rating per hit or 33% reduction, whichever is greater (for 100 stam hits) will be applied when engaged with the bracket immediately below yours. There is no upward bonus or penalty.
Further, ladder ranges will be re increased to 100 levels post level 500. This is to account for vastly smaller player populations at those level bands. Existing bracket sizes will remain for levels below 500.

