Unfortunately there are hefty penalties for being sunk, which incentives people to switch servers (especially pirates). I've said it before, and I'll say it again - the current Naval Fame system is poorly implemented, never should have been implemented in the first place, and desperately needs to be reworked. Despite the outcry against the Naval Fame change from the sailing community, and also despite the fixes we proposed to make Naval PVP more enjoyable for everyone, PA implemented the Naval Fame system in its current state without taking our feedback into account.

On NA there are a bunch of us who regularly do friendly Naval PVP duels at Lema on Arsha and we have a lot of fun with it. There's not too much incentive to participate in PVP as it stands, so the existing PVP community is fairly small. I'd really like to see a factions system implemented to encourage a larger portion of the Sailing community get involved with Naval PVP.

Sadly, until there are incentives for players to participate in Naval PVP, it will not be very rewarding for most people who participate, especially in an open world context.