It's a good idea. No, a brilliant idea. ED would not have had the development it's had, maybe wouldn't have got off the ground at all, if it hadn't appealed to a wide player base. We Open PvP and Solo players need each other to fund our game. This is why FD are focused on trying to please everyone; because it's good for the game even if they can never completely succeed.
It’s a substitute for game design that would allow all players to co-exist in the same universe. Whether that be much more sophisticated PvP role play mechanics that also give the intended victims better options that include them in the gameplay meaningfully, or a crime and punishment system that involves weighty consequences for murder.
Without either the capability, or willingness, or resources to achieve the above, having Solo and Private Group modes is the only way to address player desires for the game, and I agree with its implementation on that basis. But it’s the compensation for a design failing in my opinion, and not a brilliant game design move given the equal impact on a shared universe without equal risks.