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And your last comment is what make me think your clueless. Do you really think that 40th level toons beating 10th level toons easily is a reward for playing an RPG?
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In PvP situations I've been in before, the higher level PvPer (generally) enjoyed ganking the lower levels as much as they could. Partly for the loot they could do the lower player out of, and partly because they were sadistic bullies who wouldn't stand a chance in a "fair" fight. So, for some, they would consider that a reward.
My thoughts on PvP(other than its stupid), would be to SK the lower level hero to the higher level hero. Keep all the Enhancements the same. Now, the lower level might only have 2 or 3 powers, and get ganked by the level 50 with 20 powers. But, if the level 50 were to somehow lose, then he'd really deserve it. I'd also restrict the teams to no more than 8, just like normal PvE.
No need to make relative adjustments to damage or anything.
Another solution could be to restrict PvP to with in a few levels (4 or so either way). This way, the higher level would still have his accuracy bonuses, the lower level would stil have his penalties, but they could still hit each other. Unless, of course, the higher level used Targeting Drone, Aim, and a sniper attack.
