Speaking as someone who wanders around in full BM gear, I do just fine on SM FP's (except LI, which I know I'm not geared for, and thus don't queue for). I do relatively well in SM KP and EV with my guildies, or in a queue group that can actually work as a team. Hell, I've even seen a person or two (literally, one or two - most others fail spectacularly) do well in WZ's in decent PVE gear, even with almost constant gear snobbing (no wonder we lost. How do you fight and type at the same time?). From my experience, PVP in PVE gear is much more difficult than PVE in PVP gear.
My point is this: while the importance of gear cannot be denied, it can be overstated. Meanwhile, the importance of an individual's skill is often overlooked (e.g. someone who kicks *** in a WZ with little or no expertise is clearly good at it; anyone without at least some skill would get ground into the *********** pavement). That's not to say that skill is everything, just that there's a balance. I understand that an idiot in Rakata is still an idiot, and a highly-skilled player running HM EC in recruit is probably gonna get their *** kicked (assuming a group would even accept such a player). Nobody gets the gear and skill by magic, we all get it by playing the content.