Maybe this might sound a little silly, but about 95% of the people joining factions are only doing it for the faction artifacts, they don't even have to pvp to wear a majority of them by farming points etc. People have also been complaining about same faction killing each other, I'm sure no ones going to agree, but I think if a faction owned all the towns, or even half of the towns, they should be the only ones able to wear the faction items (Regardless of rank), that would encourage people to actually start raiding/defending and working to be able to wear all of this advanced gear, It would also encourage the same faction guilds/mates to start working with each other then against each other, because if they kill half there faction, and they get raided it really lowers there chances of succesfully defending. The old timers would have to be put back into place though!
Just my idea :]