Lots of great ideas, here's my thoughts on a few things:
Pvp rewards? I think getting xp for a kill would be a plausible idea, just like pve, except our mobs have much greater health and less actual intelligence

. I don't favor premium pinks dropping, I agree in theory its nice, but in practice would fail.
Segregation of games is a horrible idea IMO. There is already mechanisms in place to lock games, and that needs no changing. Also, when you say that levels should get progressively more difficult, I think the perfect balance was Sewers. In Sewers, bad players slowed things down, and good players sped things up (then skill point distribution also made a big difference, where it doesn't now). I remember laughing because a good group would clear the level as fast as any group on 4x, it just took longer to kill bosses without the elixirs. Then, skill mattered, and not just who wanted to buy elixirs. The thing is that people will still buy elixirs to hit level cap on their toons, but if the bosses and levels were also enjoyable without elixirs than those like me, who primarily only buy things I can stash with plat, and use patience to level up would be happy too.
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