Confirmed. While I used to always top the damage meter as a PVE rogue (that was at the time I was wearing blue stuff), things have changed now. Even though I'm wearing full pvp epic... I can't compete with full pve wearing players.
So, if you want to pve, get pve epic stuff (not S1)... expect maybe the weapons :)
And if you want to pvp, get the full pvp stuff which is good (not only the S1, also the BG stuff).
nostra