First, the TLDR version:
I think PPOO will create a host of negative side effects without providing the benefits it will allegedly bring. As a result, this will further reduce the already anemic powerplay community further. But given that this "macro-political gameplay simulation" is already mostly-dead, at this stage I'm in favor of trying it anyway... if only to see the results.
This would in fact boost the community. Most people that leave PP do it out of ability of sides to hide in Private. In fact, the Empire has done this multiple times to prevent the loss of merits to PvPers in the same instance with them.
PP in other modes is a form of cheating. It is a Player-vs-Player mechanic that people are exploiting the various modes to prevent any risk.