I wouldn't say that chaos is the reason why people are demotivated to fight on the Asmo side. The problem is more that many Elyos have sold or frozen their accounts and bought into the Asmo side, and that on Asmo there are only Gladiators and Gunners left, which isn't the case on Elyos. Elyos still play Rangers, Bards, etc., and that's more the reason why Elyos don't want to fight against Asmo groups, because it's a 100% loss.
Sure, you can remove Chaos from the game to minimize access to Glory Tickets, but there are much more important things, like banning users of Octopus or Razer Synapse, or banning purchased accounts, which isn't even difficult because who changes their email address for an account? Let's be honest, nobody would do that unless the account was purchased. I'm not saying Chaos isn't the problem, but the imbalance between the factions doesn't stem from Chaos, but from the points mentioned above.
ADDENDUM
And I'm not talking about being able to switch gear with Razer Synapse, but rather the ability to use it for slideshot macros and the much worse no-animation macros, which allow Aethertech to give someone a 4x covered silence in 0.6 seconds. These are things that shouldn't be tolerated; they have nothing to do with skill or being able to counter them. I think these are things that divide the community and reduce interest in PvP, because in PvE these macros offer hardly any advantage, as they just unnecessarily drain your skills.