Yea I don't disagree. The very first thing I'd do in a PVE mode is cap the players at 12 per raid.
Right now it's anywhere from 12-25 depending and that's way way too many in a PvE lobby.
That tips the scales completely in favor of raiders already and any adjustments made to Arc with that many players at the base would be stupid.
There's definitely room to make pve work, there are plenty of things you can do especially if they make it a separate character altogether from PvP.