A lot of things in New World has an Economy of Scale problem. Larger companies will take the best territories, earning the most coin and crafting the best gear. Which in turn leads them to be able to keep said territories.
While I think the 30% Luck when flagged was very well intended, it did not work out well in my opinion. The people that already has the best gear and most time to play will be able to play with PvP on and fear little resistance. For a casual player with bad gear who is trying to catch up, this means they can not run flagged. In turn this leads to the Rich and progressed players getting further ahead.
You can also see this in the way people run the watermark farms in Myrkgaard. The Large companies can run together flagged, leading to better drops and more coin. However, a smaller group that wants to go into Myrkgaard flagged can’t because sooner or later one of the large PvP companies will come truckin.
The intent was to promote world PvP, but what it ended up doing was making rich get richer and leaving more and more of the player base getting further and further behind.