The pvp vendor is not the problem. The problem is pve not having an equivalent kind of vendor that allows you to target specific pieces of gear and allowing players to gain some kind of currency for said pieces to it feels like they will be rewarded eventually.
A badge or valor point vendor would be a decent solution, hell even a residuum wouldn't be all that bad. But removing the pvp vendor is not a solution. Blizz will just be creating more problems if they do that.