Apparently you didn't read... only Friday and Sunday will give rewards other days give nothing, it would just be a pk instance.
I think the main problem with this is that there wouldn't be enough interest in this without a strong reward. There are many pvp areas already and a lot of it is dead for a good reason. Changing the way pvp works on here will take more than adding a new instance. Assuming people agree it needs changing, which is doubtfull at best.
Obviously I may be completely wrong about this but I think interest in pvp has taken a bit of a dive lately because of a few balance issues along with attitudes of the major pk factions.
The balance issue I'm refering to here is the big difference in ability in single vs mass pk of certain classes, most notably the EA. Most ea's are utterly useless in a 1v1 but they are by far the most powerfull thing in most mass pk's (Yes I know there are exceptions.) , hence those people who play EA because they are serious about mass pk get discouraged from playing without numbers and those who aren't that interested in mass pk get deterred from it even further.
Add to that the way it's common lately to spend about half an hour trashtalking anyone who loses and it's not strange that theres much less interest in pvp. What's the point in going out of safezone if you're just going to get instakilled by a squad of buffed ea's followed by 30 minutes of trashtalk in worldchat?
Of course you could also make the argument that pk like this is much more competetive, taking commitment to a strong pvp class as well as good teamwork and sufficient numbers to be able to compete. It's just about what you prefer I suppose.
I wonder if it's possible to disable squad/faction protections in a pvp instance... (Friendly fire on by default essentially) I think that'd be interesting to see.