The problem with PvP and SvS is that it does not mesh well with the PvE elements of the game. Ideally, PvP/SvS should be largely skill based. My best experiences with the gamemode is when I was playing against an opponent of similar level. You can get really creative when trying to best an appropriate foe in SvS, utilizing your special abilities to achieve victory.
A proper SvS battle can go as such:
1. Using every speed-increasing skill to cut off the enemy ship, who was sailing perpendicular to get past the rocky islands.
2. Use "Open Fire" to attack the defenseless bow of the ship
3. Take cover as the ship circles around and returns fire
4. Use "Come About" to maneuver your ship to be perpendicular to the enemy's stern, allowing for the broadsides to safely sink her.
Stuff like this can get pretty intense, and is derived from actual age of sail tactics. However, it took me getting to level 40 and upgrading my War Sloop to a Storm Chaser level to even get a few fights like this.
Most of my SvS fights go like this
1. Sail to where the enemy is
2. Get hit by one or two broadsides/gunners
3. Die
I feel this is the experience most people have with SvS, which is why its so unappealing to most people. The problem is that the PvE side of the game is largely built around defeating hundreds of NPC enemies in rapid succession. Ships like high level EITC ships which are meant to be somewhat of a challenge are sunk in seconds, and the most powerful Hunters and Warships in minutes. While this works well for mat runs and looting for higher level players, it results in players being able to do ludicrous amounts of damage.
Armor might as well not exist is SvS; upgraded broadsides and gunners can take any ship down in seconds. This is partially why War Sloops are so popular is SvS, and why Galleons, which should be their strategic answer, are not. Instead of letting the player choose damage and durability versus speed and maneuverability, the name of the game is entirely speed and maneuverability, because seven upgraded broadsides and four deck guns designed for PvE activities are more than enough to break through any armor in seconds.
To summarize, the PvE environment of TLOPO has left us with a dynamic where only the highest leveled and upgraded pirates can enjoy the PvP/SvS side of the game, leaving everyone else frustrated with it. This is a shame, because these gamemodes can be a load of fun, but the RPG elements make it a test of numbers over skill. A PvP server could be an interesting and refreshing experience, but I believe that it would only work if the PvE and PvP mechanics were reconstructed in a way that both sides compliment each other.