Back when favor was based on which territory held favor, PvE only people actually cared about what was happening in PvP land. Favor was something that people would wait for hours for, root for peeps in the halls. it was exciting. Making favor based on people maxing titles, kind of defeated the essece of Hero's Ascent.
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I personally feel that making favor based on maxing titles was..well..lame. favor dependent on territory split pve and pvp even further. Before the change, winning halls got you recognition. Once you one halls, people from your territory would pm you with congratulations and morale support. Claiming favor for your territory made many people's evenings.
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What effects would this have on the GW community?
-Firstly, with many..many fewer people entering FoW and UW, prices of ectos and shards would rise from their incredible low to a stronger price. Obsidian armor would be a bit more expensive; its incredibly cheap now. the price i paid for my monks fow is roughly equivalent now to two sets of fow and a tormented item.

-It would reduce the divide between PvP and PvE. In order for PvEers to get access to those elite areas, returning to the old favor method would encourage PvEers to branch out and do some PvP, get the favor themselves.
-Effectively, returning to the old favor would make FoW and UW something special, and not just another elite area.
-Aslo, from a PvP standpoint, this once again creates competition between the territories. Being based in America or Europe means nothing now. This would once again return that old feeling of competitiveness.
-24/7 access to FoW and UW means that people will maybe... do DoA again? While they wait for favor (assuming they rent getting it themselves) there are plenty of other elite areas that get overlooked, with hardly as much activity as they used to; Slavers, DoA, Sorrows Furnace, Deep, Urgoz, more PuG groups for HM EotN dungeons (i know peeps do partake in these areas still, just..to much less of an extent than they used to).
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Consider my arguments... criticize.. flame..w/e.