I dont play much PvP, but how about you make it so that you have to do good, then let RNG decide if you get something
Ex: you have to have a good Kd or top 3 on your team for you to even get RNGed
The problem with that is that the same people would get all the loot and the average/below average players would have no incentive to enter the crucible. That leads to dwindling numbers in the crucible, which leads to less resources devoted to creating new pvp venues and pvp people who are unhappy and don't even understand why. There is no perfect system. The most important factor is involving as much of the destiny community in that aspect of the game, not just loot and k/d whores.