I understand that this item is providing a severe side-effect in PvP, causing you to nerf it to completely useless now. However, you need to realize that it is a vital item in PvE for some classes who cannot heal themselves at all or has very limited heal.

As a matter of fact, my fresh level 50 mage with only 3 crafted epic (the cheap one) and all blues/green can farm those elites in Stillmore easily and end up with full health/mana (including pet) after killing them. And that is far more easier than my rogue when I had full T2 gears, because the ranger's pet healing is very poor and does not scale with your status at all, also gear does not provide much status useful for your pet as well. This causes a horrible imbalance between classes, and this Bottle of Lifeleech is a vital item for a rogue to solo elites when in moderate gear. Mage's pet healing is twice powerful than rogue's and heal the mage himself as well. You'd better play them to verify it yourself.

Why don't just make this Bottle of Lifeleech unusable if you are flagged, and return its original effect? Since it is completely useless now, I don't think it matters if you just make it unusable in PvP, while still viable to reduce the crazy imbalance between classes for PvE.