The thing is creating new good PvE content usually costs money, whereas PvP players can play the same thing over and over again - just look at the people playing Starcraft, and other games.
And I actually think GW1 PVP still has a lot of untapped potential - the actual game mechanics are decent, but the human aspects are being handled poorly.
If you had different divisions (like in sports - racing, soccer, boxing etc, or even other games ), then more noob players would be able to learn about PvP more easily at the low-rank divisions, or even unranked divisions rather than:
a) Not getting into a group to actually start learning because "nobody wants noobs"
b) Getting in after 10-20 minutes of waiting and getting wiped/farmed in seconds by some elite guild (happens even in "random PvP" due to sync-ing), and being flamed and blamed for the loss. Can't really learn much from that except to not play PvP.
And so you get fewer PvP players.
FWIW even games like "Tetris Battle" don't let world class tetris players farm the beginner players - players can only challenge players if the difference in their rank/level is not too great and there's also a handicapping system (no point in GW - given the sort of gimmick builds one can come up with...).
Might be too late for GW1 but maybe they can do it for GW2 - it's easier to divide thousands of excited players into X divisions than near-zero players into X divisions
.One should still allow a great difference in rank for GvG if both parties consent - that allows guilds to teach and learn. Whereas for more automated PvP battles, the noobs should be in a different league from the Champions.
I suppose some formats will still need to allow "random" players. I believe FA could get very unbalanced if the randomness goes away.

