First off, dragons 'will' eventually go PvE, but not right now. This has been something planned for months, even before any 'guild dominance' simply for the fact that it's generally not a fair system for the high end gear. I don't really think PvP and getting gear should be together, I think it causes a lot of drama. I've heard the complaints from all sides and all guilds have flip flopped from one side to the other (aka this is terrible to why change this, based on obvious reasons.) Dragons will most likely become some sort of dragon points, where you earn points to spend on dragon weapons (and armor). Everyone will earn it long as they have participated but it is still unsure on how it will be done. It could be based on activity, damage & support, number of hits, etc. I'm not sure what the most fair system is yet but I'm not focused on this right now.
So, why aren't we changing dragons yet? Well there are a few reasons, but the main reason is we need a proper outlet for PvP first. I want to make sure there is PvP going on in other locations that is fun and interesting before I change dragons. Factions will be one outlet for it, but it won't be the only. (Factions tries to promote 6vs6 fights at the moment with a possible 'max lives/returns' system, though this may be adjusted in the future.) We are working on other things as well.
Swapping dragons right now isn't a priority until we hash out other things. Crafting has to come in first, factions, other fun PVP things, etc.
The only 'true' PvE I want to introduce is areas that people who don't care about PvP at all. However, they will be lower XP and lower gold like arenas currently have. They are pretty much glorified arenas, but instead of pulling a chain to spawn a mob and sitting, you can actually move around and get a bit more immersed in the world. I also want to expand the unsafe areas so it's harder to get back to a safe spot (Similar to how we moved the Wiken Graveyard out so it's not attached to Wiken City anymore, except longer.). Then because we would have 'PvE' areas we should be able to remove the 'max kills per hour' rule and say 'if you travel in unsafe areas because you want better experience, then it's on you if you die or not.' (AKA no PK rules.) Simple and done. In this system anyways there is NO difference between an area that is PVE vs a arena that is PVE, and then make sure to reward people for leveling in the PVP areas, aka standard areas as they are now.
On top of that system, I want to simplify the PK/PKK system. The repent system sort of works, but it's overly complicated and mostly pointless. I feel like the PKers losing XP on a level 25'er is plenty enough as if you lose too much experience, you will lose stats until you relevel.
I want to do away with the repent system and just leave it if you PK an under 25er, you will be flagged as a PKer. You can be killed ANYWHERE but cities or outpost shops. (AKA You can't hide in a PVE area). When you die and as long as it is valid, your PK flag is removed, you lose XP, and you are 'safe' again. Pretty simple, no confusion or a strange system. Loss of XP will work as it is now.
I've heard some silly comments about PVE like:
[11:27] From XXX: anyways im sure now that most of YYY wants pve hawk will change it soon.
Are really stupid and make you look goofy, and pretty much looks like a attack on myself for some reason or another. I've never favored any guild and it's surprising certain people would think so. I simply don't care about your guild, their guild, or your guild drama 8) All of this has been planned awhile back -- including the dragons. I'm pretty certain I can pull messages of the same people messaging me that they should be PVE because it's fair, so it's silly.
TL:DR No, the game isn't going full PvE and never will. Making sure PvP is still relevant and fun is the top priority before swapping ANYTHING to PVE and that is currently not here yet. ALso, stop being goofs.