They just decided to remove PVP from the game for the time being while they work out the kinks. I have been in the beta since the beginning and I'm not sure what to think. When the game first was unveiled, it seemed like PVP (normal fps multiplayer) was the main focus of the game. Fast forward to today, the CEO claims only 3% of Firefall players are playing PVP (I believe it). PVP definitely needs work, so this is probably a good thing - but I have to wonder how deep The9's pockets are (Red5's Chinese investors)....so far, they have allowed Red5 to completely change gameplay over and over....which can be a good thing, but I worry about how many people are getting burned out due to the game changing every few months. I read somewhere that they have spent more on this game than Blizzard spent on the making of WoW and Diablo3. I don't know if that is true though....if so, it should be worrisome because this game is nowhere near as complete as either of those games.
It also seems weird that they are spending all this money on marketing (million dollar statues, multiple RED cameras, advertising blasted all over PAX and other conventions) - without generating money.