It makes sense tactically as you know who is doing what and for what reason in that area. There will always be pledges who kill on sight, but for others it allows a certain context to frame what an opponent is or might do. When a power expands or preps, it gives a focus for players to attack.
In Powerplay its easy (or was) because anything was valuable (in merits, which were converted into rank 5 cash)- you did not need to know what it was.
For some powers its almost industrial.
Depending on what you start with, probably. Powerplay though is hugely interdependent with a number of tightly wound systems in play. For example, Consolidation was a great idea that had side effects that have made Powerplay very static. It all comes down to FD having a willingness to follow through with five or six Powerplay updates, each incrementally tested- if they are willing to do that, then fantastic. But so far they keep kicking the can down the road over and over, and opportunities are few (hence the need to at least see things holistically).
Eh, trouble is, you start running into problems like Yamiks' recent '100 questions' thread. You accumulate and accumulate ideas and suggestions until eventually you reach a point where there's not a chance they'll
ever do anything about it. Better to keep your suggestions clean, simple, and not co-dependent, or what could be a few nice, simple, easy-to-implement suggestions instead become one massive wall of text nobody wants to even
think about.
Anyways, regarding pvp, the fact that there are a significant number of people who already kill on sight regardless of reward or consequence means there's really no need to further incentivize that behavior. Frankly, the game doesn't
need more of that. By contrast, Piracy is an activity that is currently almost extinct, and needs all the help it can get. While you're right about the old profitability of merit piracy, I think that system was unnecessarily separated from reward. Why bother pirating to get merits to get paid, when you could just pirate and get paid, and then get merits besides? Heck, you should be able to pirate merits even without being a pledge, and sell them for good profit and to help the power. You wouldn't get any merits for doing it, but you'd still get the cash, and it would mean even independent pilots might come and help a small power if a larger power is particularly spamming them with shipments.
The optimal system is one that incentivizes a wide variety of gameplay styles in the simplest possible manner. It's like Checkers; you basically only have like three rules, but it creates a game with a huge variety of possibilities.