This is a tough one for me. Personally I'd be down for disabling PvE gear and mandate PvP and nothing else, but I can see how people who "put in the work" get rewarded to a small (5-10% tops) extent.
However that does bring in balancing issues, as the top tier of gear generally grows as time goes on (t3, then t4, then t5, then a new set of jewelry, etc.), which means that 5-10% is gonna grow to 15-20% and so on, which means balancing PvP gear/Creeps is gonna be difficult. Is PvP gear going to be updated every 6 months? It may be problematic in the long run to allow PvE stuff.