Many players are reporting that even when wearing +% Luck their non-PvP flagged gathering results are worse than before the patch.
If this is confirmed AGS just created an evil system to bait out crafters to a gank fest. Yes there is more PvP going on, but it does not mean both players PvPing are happy as crafters are just being victimized.
PvPers could always duel, could compete at Outpost Rush, could rage Wars for Settlements and patrol PvP missions, but they were not happy fighting each other, to be happy PvPers need the hability to bait out and gank lowbies, patrol node routes to Zerg crafters and Tea-Bag PvErs.
Encourage people to flag? No, by nerfing the other means to buff Luck you are actually forcing crafters to expose themselves to a game style they hate.