why not a paragon city/rogue isle raids where for a short while villains/heros attack/protect a random certain part of the city... Obviously for RP reasons there should be a tough PvE objective and badges envolved for both sides.
Actually, I was thinking last night that there are so many Arachnos in Faultline that it should be a PVP zone. Keep the normal Blueside content and arcs, but also add some stuff for the Redsiders as well...real content not just "Capture the Communications Officer"-type stuff. May keep the two sides of the zone divided by the Dam and whoever controls the zone has free access through to the other side.
I've only been playing CoH for a week today...kudos on I10 and I too have noticed a considerable improvement even since yesterday afternoon on the lag during the Ritki raids.