Problem
I think we can all agree that PvP participation is at a very low point across the board.
Current PvE players are unlikely to overcome their distaste for PvP.
Increasing participation will require new players.
Fiddling around at the edges, changing rewards structures, rating systems and so on, putting band aids on a failing side event, will not bring new players to the game.
Proposal
My suggestion is to detach PvP from the main subscription.
PvP should move to be Free-2-Play or attached to the Xbox Game Pass, alongside the other Blizzard games already on the pass.
Unlike the current trial system, players should not be restricted from using in game chat or the auction house. They should be able to join guilds and communities. Social interactions should be encouraged.
A new city should be constructed and it should be quarantined from the rest of the game, like the way MoP:Remix was, where your character would be unable to leave. Except it would only need to be a small enclave, big enough for players to not be standing on top of each other and to contain some vendors and the AH. It should contain the things described here: PVP needs some serious QOL changes.
F2P/Game Pass players would be prevented from engaging in any form of PvE. If players find that they wish to access PvE, they would need to purchase the expansion and subscribe.
Levelling all the way up to the current expansion level cap should occur entirely within Battlegrounds/Arenas.
An increase to the XP gained from them would be necessary.
When at level cap, players should have full access to both Rated and Unrated modes of PvP.
Players should be able to buy WoW Tokens to enable them to use the auction house to buy consumables and gear.
Benefits
If PvP was a path to introduce new players to WoW, Blizzard would have a measurable incentive to increase the available budget to have more focus on its systems.
Participation would increase, with an influx of players who would not normally consider beginning to play WoW due to the initial cost outlay, queues would be quicker, inflation in rated modes would increase dramatically.