Pvp no risk no reward. Instead of having no penalties for death in the Pvp arenas, how about the following.
Upon death the losing characters inventory will be opened to the victorious character. This character will be allowed to pick any one item from that inventory with the exception of items that have been bought from the DDO store. This would include plat, bound to account, and bound to character items. Yes your greensteel, dragon, and all of your other items will be at risk.
For the winners, you will receive 100 xp per level of the character killed plus whatever one item you want from his inventory.

\flame on