From the view point of a newer player:
I love CoX.
I have 3 accounts and characters on every server.
Overall, I find the CoX player base one of the best groups of players I've encountered.
Vet Rewards and the PvP discussions being the exception that proves the rule.
I am a somewhat competitive player.
I like the though of potentially getting involved in the PvP aspects of the game.
Telling me that because I've not been playing continuously since Beta means that I'll never be able to compete with players who have, not because of any amount of skill or dedication, but because I did START at the same time they did is somewhat a slap in the face for my $45/ month and the ungodly amount of time I spend on this game.
The more powers and advantages you give vets, the more disheartening it is for those who know they'll never EVER catch up, short of buying someone's account. The longer the game goes on, the greater the desparity between the "haves" and the "have-nots/ have-lesses".
---Mal