I agree, Ilum is broken, and the change to make it better made it far worse. One suggestion before changing a system... make sure that it's making it better. You know you've totally done the wrong thing when you release a change and have to bring the area down because it is so awful. I like these ideas, it would make Ilum far more enjoyable for me. Have there be a point to Ilum, not just kill exchanging, but factional buffs that would carry over in to other aspects, even PvE buffs for Flashpoints and Operations.
PvP servers should have 1 affiliation, either republic or imperial not both. Difficult to make that restriction now - but would be worth while moving forward. I know there are people that want both faction story lines (I'm one of them). If you want both story lines, then roll on another server, it's not like you're imp toon will help your rebel main much anyways - except for letting your guildies camp you on Ilum for their daily/weekly.
Let's get some good PvP ideas flowing so we can make a fantastic storyline driven game also viable for PvP, and not just a conglamoration of gank squads that are only stopped by being insta-killed in the oposing bases.