I'm currently playing another recently released MMO. In it pvp is very active and I will say very balanced. There is no 1v1 or 2v2, you can only pvp in a group of five, so 5v5.
However what makes it so balanced is the way in which the groups are created. You can only pvp against another group of players that are in the same level range as your group.
The level ranges are as follows. 8-19, 20-29, 30-39, 40-49, 50-60. There are no puppet teams. Maybe if KI adopted a style like this, (though I'm sure there will be some challenges, like not enough people in your level range at the moment) pvp might seem more fair. So we don't see people on the leaderboard with no wins and a 5000+ ranking