To certain extent, PvP is healthier than ever. The cross-server battlegrounds introduced are a huge success. There are always battlegrounds of every type open, waiting queues are much shorter than ever, and the availability of battlegrounds got more people than ever interested in PvP. As a viable alternative wow gold activity to PvE, PvP has really come of age.
Outside of battlegrounds, on PvE servers, PvP is rare. People duel for fun or to pass the time when waiting for something. But the overland PvP objectives aren't exactly popular. People do them once, to get the related quest rewards, then yawn and move on.
Still, the shortcoming of PvP is the reward system. Few players seriously go for the high-end rewards in that system, most players are content to reach Sergeant and get the 10% NPC vendor price reduction. Going for the highest rank means you need to compete with people who do nothing else but PvP up to 16 hours per day, and to most players that is just not possible. This isn't about skill, any idiot can make more honor points in 16 hours than the world's best PvP player in 4 hours. The one skill that helps in PvP is organization. Going to a battleground in a "premade" group, using voice chat, is the best way to collect honor points.
In the Burning Crusade expansion, many positive changes to PvP have already been announced. It seems that Blizzard has realized the potential of battlegrounds as "casual" PvP entertainment for the masses, and is changing the honor reward system accordingly. The relative rank system will disappear, and people just collect honor points like they collect experience points or faction reputation points, in a cumulative manner. Then these honor points can be spent, like a currency, to buy PvP rewards. Thus finally 4 evenings of 4 hours PvP give the identical reward than one day of 16 hours, which makes PvP a lot more interesting to the majority of players.buy cheap wow gold
All in all, PvP is bound to improve further with the expansion. The negative side in that is that it diminishes the interest in going after PvP honor rewards now. Certainly you don't want to be half on your way to some PvP honor rank when the system is abandoned. It isn't clear at all whether and how your current wow gold honor rank is transformed into the new honor points, it is quite possible that you just lose all. But of course the same can be said about PvE rewards, why break your back to get some level 60 epic now, when it might be a lot easier to get a level 70 blue item that is better?
In the expansion, the arenas will give concrete ranking and really good awards for winning. The serious PvP'ers will find out the best combination fairly quickly. I'm hoping that enough people will find this unacceptable that Blizzard will propperly look at class balance rather than just trivialising arenas.