Well, they did it that way to have 100% idea of the reduction, but I don't think they'll find a happy medium between PvP and PvE unless they make the ability act different in PvP from PvE.
They're adjusting little by little, and all they'll notice is that people still one-shooting others in Ker'rat.
They really should just stop trying to make it useful in PvE. Problem is with the way they designed PvE spike damage is completely worthless, its all about sustained damage. Short of buffing its damage by 200-300% i don't see it ever being worth slotting in any PvE build, BFAW, CRF, and CSV all blow it away for PvE.