I know you may already be thinking NOPE Battlegrounds destroy PvP but hear me out.

Why not add an optional instanced PvP minigame with other players. You choose your ship to play as from a list of NPC ships with preset loadouts (like from the typical rats). You can configure a number of options and parameters for the arena match like number of players (1on1, 6on6, 5 frigate vs 2 cruisers) ship classes allowed, or NPC pirates blockades. Hell, there may even be options for challenging PvE senarios like protecting a convoy or cloaking and evading patrols while smuggling a prisoner out of enemy territory.

Restrictions:

Can't play as a ship class or build that you don't have the required skills to fly/use

Limited number of entries for the arena matches for day or week. This is so players don't do this instead of real PvP

This will cost x isk. May be expensive and depend on the match type or ships you fly, unsure.

Rewards:

No isk

Actual PvP training without loosing what you own.

Fun

This would have to be initiated while in a station and would be a really cool casual minigame to have once they get the walk-on-stations added.

Good? Bad? Terrible? What do you think?

I kind of see your point.