The merc system is necessary. End of story.
But what if you really, really, REALLY don't want to play alongside the opposing faction?
How about this: if you turn merc "off", you queue with a 50% penalty to favor/prestige/experience gains.
You're choosing not to participate in the system that is providing everyone with faster queues, more favor/prestige, and a fantastically improved overall pvp experience, so you don't get to enjoy the benefits of said system. You'll still have short 1-2m queues, but your rate of favor/presitge/xp will be more like what we saw on average from the previous system.
Oh, and max-geared P40 players who don't merc? Since they have no need for favor/prestige, they suffer a 5% penalty to all stats and 100% reduction in experience gain.