I overall agree with this sentiment. Combat overall leaves a lot to be desired, and creating the VS version of a bullet sponge doesn't feel great. The drops in general do not fit the risk/reward ratio, especially when a heavy storm comes. And by the time those come around you've already gotten a gear necessary to make a bind point... which to me is the only reason to even participate.
The risk/reward balance feels better for caving since you stand to gain much more from that adventure.
Aside from a revamp to combat and mob spawning, I'm not sure of a way to make it feel better either.