Personally, I'm happy about this. I don't think of pvp gear and pve gear the same, so I don't like having to check whether someone is actually wearing the pve or pvp version of something. Simple recolours weren't enough to differentiate, for me.
The way I like to think of it is like so: People tend to focus on one side of the game or the other. If you're a heavy PvEer and you see someone lounging around in a new tier of raid gear, it means something. You find yourself wondering "What? When did <Thatguild> clear Ulduar?" or something. Instead, now, I tend to ignore it and assume it was some guy who got his pvp shoulders.