I know it's probably going to be unpopular, but I'd like to see "uniforms" in PvP. We're all fighting for factions who aren't exactly cobbled together. I'm sure it's not a stretch for the armies of said factions, to match. You'd be able to tell who's who, without big floating red text getting in the way, and you'd (combined with the stat buff for PvP they're already putting in) would put everyone on equal footing.
Well, more or less. Of course the higher level players will have access to skills lower level ones won't, but that shouldn't be TOO much of a problem.
I don't think we should have to have uniforms for PVP but your post gave me an idea.
I think an interesting mechanic would be that certain outfits will cause NPC 'guards' to be hostile to you in other Faction's territory. Some armor would just be identifiably one faction or another by belonging to a set group withing that faction.
Like wearing Ordinator Armor in the Aldmeri Dominion/Daggerfall Covenant for example. Or wearing Ordinator Armor in the presence of Ordinators if you are not one of them. You would have to attract their attention though. Like committing a crime and then they realize you are wearing Ordinator armor so they give you additional penalties/fines/kill you screaming, "DIE SCUM!!!"
Armors that could be similar would be
-Wolf Armor from the Companions(if they have a uniform armor set)
-Indoril Armor and the variations of it like High Ordinator Armor or Her Hands Armor(just repeating it)
-Buoyant Armiger armor(let us assume they have some kind of glass related uniform)
-Alikr Outfits
-Thalmor Robes
-Psijiic Robes
-A uniformed type of Elven Armor used by the Aldmeri Dominion
-Morag Tong Uniforms
Basically whatever constitutes a faction outfit gives you problems. Small or big. Maybe harassment by guards or outright attacked.