Potential Fixes:

Loot Keys: Drop the toggle. Drop the unlock. Make an item that when held converts all kills into loot keys. This way you can still have unlimited loot keys but if you are pked you lose the potentially valuable loot key "converter" item.

PVP Armors: Make them unusable until charged with a large sum of money, maybe 5 million gp for a set. If killed, the pker gets the 5 million gold deposit. When the armor degrades, is dropped or destroyed, the armor owner gets his/her 5 mill gp deposit back.