I don't see anything overpowering or unbalanced in the way people take vamp form with items right now, either in PVP or PVM. I feel that to remove it would be a mistake in respect to the PVMers, and it would be a slap in the face to PVPers who use it.
I have a vamp sammy dexer who kills monsters and a vamp archer who kills people on occasion. Neither one of them stands out as being some kind of god when compared with other characters and templates.
On the PVP archer, the vamp part of the template causes complications and it's high maintenance, it's by no means a free walk in the park. My archer pays out an assload of insurance every time he dies because he carries all of that vamp emb. gear with him. He has to work Lich Lords or other karma-building monsters regularly because the template happens to carry Chivalry and the vamp emb. spell screws his karma every time he casts it. The template is forced to carry GM healing and anatomy in order to cure lethal poison because vamp form will not allow him to drink a greater cure pot under any circumstances, yet, the vamp form does not protect him from lethal. Also, the template can never include Ninjitsu for the purpose of assuming animal form for a quick get-away. He would have to go through a procedure to remove all necro forms before assuming a ninjitsu animal form, and that procedure requires either one or two necro spells to be cast and is too slow and awkward to be effective while on the run (which is when you need that animal form to be there for you on a Ninja). The template can also never be turned into a true Archer-mage because more than occasional use of the spells that include Garlic as a reagent would cause too much damage to be useful. All 4 of the heal and cure spells are in this category.
For all of this trouble and template limitation and 35 skill points, my archer gets the identical effect of having eaten an orange petal, a good life leech in PVM, a smallish life leech effect in PVP (it's kinda insignificant, but not nonexistant), and some additional stamina and mana regen. Oh, and a cool-looking white complexion. On the surface it doesn't even look worth it, but it's the choice I've made for now, and it's working for me.
People who whine about vamp dexers should knock it off. It's not imbalancing anything in PVP, it's just a template choice as it stands now, and it's important to some key PVM templates. If they were to take that away it would just serve to disappoint people and not help or balance anything.