Here goes: Make it so that no one can see if you are "red" or not. Then have an experience/info gain or loss for PvP. Loss of info and or experience (*only*, not items) If you attack and or kill someone from your own org, or someone less than 5 levels from you. Experience and info gain if you kill someone within 5 levels, scaled so that the most gain is from killing someone 5 levels above you. (and the opposite for killing someone below 5 levels) Perhaps have the max info amount for 2 50's PvPing. Maybe do things like buffs decrease the amount of info/exp awarded....
Theres alot of things that could be changed around to make the game and PvP more interesting.