To be fair, aren't people who are seriously playing MMOs for straight up pvp just going to go for the much newer ones with proper ladders and all, instead of an aging and rather bizarre grindfest / sex chat line which has never had viable pvp mechanics since its outset? This myth that any serious "pvp" player would spend more than thirty seconds playing AO is beyond silly, given their other choices in the market today.
FC, for what it's worth, does seem to have a viable concept of what ACTUAL pvp players want in pvp mechanics, as shown by the beta for this new arena game they were pushing a while back. Even if they had to buy a clue on pvp by just snapping up a smaller company, it's clear that they do understand the concept of viable pvp on some level. They just have no intention, and no ability really, given the framework of this game, to ever implement that concept within AO.
Sure, AO "pvp" only appeals to people who think racking up 5,000 hours of /played grinding phatz constitutes actual skill, and no, AO is never going to have actual, viable pvp mechanics. But what does it matter? The main (only) appeal of this game has always been, and always will be, the endless twiddling and twinking. When you get right down to it, the only actual interesting thing to do in this game is building new toons. And once they're built, the only thing they're useful for is . . . building more toons. Which is fine. Some game has to fill that niche, so it might as well be AO.