I just hit the BL. Second hit was a hansel. I can crack a hansel open in about 2 shakes of a lambs tail. BL would still be tough to regulate I think...
The bonus that you get from the items is huge, but you only have to get them once and then you're back on a level footing. If you dedicated 2 or 3 weeks to collecting equip you'd be able to pick up most of the bigger stuff and then you can go back to farming on an equal level. Considering the amount of time people put into OSW, putting in a few weeks to compete at the top doesn't seem too bad..
Also bear in mind the any changes proposed have to have some plus side for devs or they have no incentive to make it work.. Dropping items from BL could work (only from BL to stop abuse) but would probably slow PvE which is where devs make most of their cash ( I imagine).
20 consecutive wins in PVP is pretty hard to do 20 consecutive hits on an inactive or alt or osf is peanuts. Even if they limited it strictly to BL, (no search function) it wouldn't be difficult to spend a bit of time looking through it for a easy target.