It was never designed as PvP, that was just one of the desperate attempts to breathe life into (along with Hotel California, exclusive modules etc) when it turned out to be a massive DOA turkey. Of course, the smart thing to do would've been to make it interesting gameplay to start with, or even to second with.
Although I don't want to discuss the point excessively (since I don't think V2 is going to be Open Only and that its going to be a BGS layer) PP as it stands was as close as an Open Only feature as you could get. It contrasts wildly with a true pan modal BGS system where activity is participation within a day, with heavily abstracted actions and limited influence.
Unlike the BGS it was without abstraction and near real time in its feedback (as in, merits were counted in minutes, PP bounties minutes, all merits were 1:1 and not S curve based) and that each time a proposal was mooted (two) for V1 it was Open Only (and that FD saw it as a PvP mode) because instanced ED NPCs could not offer meaningful resistance. This was and is a problem because PP territory is seen as supra-system (as in, an average PP journey is over multiple jumps) but the NPCs were tied to system level.
PP V1 was logical from this standpoint as it extended out the scale of conflict, but was let down by technical reasons- while players can be unpredictable in this situation NPCs could not.
In other words, player vs player doesn't imply players killing players.
The issue is, to truly make a mark on V1 in an Open context you
had to kill others because fortification was what kept a power solvent or prevent combat expansion merits- no NPC fortified or dropped merits. Its why the mode issue was such because NPCs could not compare to (eventually) engineered players and the design unraveled.
This is why I think (given how ED has evolved) V2 will remove merits / explicit PP cargo because they will remove the supra system point to point nature of V1. Instead it will make influence local (like factions) but apply it to a more evolved expansion mechanic driven by general ED tasks plus PP missions on top, with unique bonuses to make it a BGS+ like system. It means NPCs
can be priced in and not be avoided too, all the time doing varied tasks.