A few things the op failed to mention about SZ. Evil team did not dominate pvp, they made deals with the heads of other team guilds which allowed them to clear content and jump ahead of everyone else at which time they said all bets are off...
Sure they dominated Raid content and this was because of the brains of the leadership not because of brute force. They saw losses daily in pvp just like every other team.
The real issue you folks have with any ruleset you decide to use on a secondary server is that once a dominant force is established folks will flock to their side for ezmode. A very small contingent of folks will fight to the bitter end but in general never catch up once a gear distance is established. The rest of the population will give up or join the "dark side" or sit around griefing lower players bitching about the guy griefing them.
There is no way around it, unless you have folks willing to take the hardships to be the underdogs you have no fight and every attempt at a pvp server will end up being run by those with the best gear (raidwise) PVP failed on live cause in general most folks can't hack getting screwed with, mentally or physically and there is a huge and I mean huge herd mentality with todays gaming crowd.
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