The problem when you make a game F2P is systems need to be designed around annoying players enough to pay. Some games are less annoying than others, but at their core they need to give you a reason to spend money.
So, while F2P games annoy you into spending money, subscription games entertain you so you keep your subscription.
They aren't rewarding you for "almost being good enough to win." They're rewarding you for nearly matching another group of player's skills but ultimately losing. It's incentive to keep trying when you're on a losing streak.
It would be frustrating to not get at least something out of it, when you're losing.
Involve us in something we can actually impact. Tell us an Alliance story for the Alliance and by the Alliance. We're paladins of Stormwind, agents of SI:7, dwarven mountaineers, draenei vindicators, and so many other things. We are the Alliance.
One thing we're not? Darkspear Revolutionaries.
That's ridiculous. Defeat should have no reward associated with it.