I personally think grinding is very boring but I have always felt I _have to_ do it. Well, I eventually I decided to just stop it. Except a few hours in Mithas recently Kiara hasnt gone on a XP-run for... well I dont even remember when. A year at least. When people invite me I either make up some excuse or simply tell them I think its boring and I dont want to.
I think the need to grind so much to be able to stand up against the grinders definitely takes away time from RP. I never mentioned that because I figured its so obvious. I am almost certain that in the past when the highest level was much lower people most people never felt the same need to grind, I sure didnt, and spent their time doing other things, like PVP and RP.
About rewarding RP with power that has been suggested now a few times (not only by you Arcon)...
Sure, it balances out fine if people in those guilds focus more on RP and dont grind so much, so they're all hero/titan sized or so. But thats not how it works. Of the 10 biggest people in the game a majority belongs to RP guilds. So we would rather end up with huge powers + huge stats becomes... yikes... One idea would of course be to somehow, and in a logical way, cap stat sizes in RP guilds... but well... that seems a bit complicated...
Another problem with this is that it would be like saying you DONT have to RP in the other weaker guilds. And what if say BDA players decides to focus on heavy RP. Then they need to be upgraded to an RP guild and get more power? And if Scops loosen their RP standards should they then be downgraded? I mean we've had guilds that were taking RP seriously but now are more or less without RP. So that can happen too. I think its just too complicated. I mean balance seems hard enough without factoring in RP, and I havent even mentioned the problem that someone has to judge what is good and bad RP.
I totally understand the idea but... it just seems like a too complicated system to me.
I think a better and easier solution is simply to require less grinding in the game. Like it was before. And come up with other rewards for those who like it. Or, simply make that choice. Sacrifice grinding for RP, PVP and interaction. If I held the button for that change I'd press it right now.
I must say, I've had much more fun than I've had in many years since I decided to stop grinding completely and only focus on interacting with people. And no, not only this recent mage thing, but before too, and in more friendly ways. Sometimes during events competing, or during events teaming, or sometimes I've simply hanged around Sparkle bugging people and forcing them to interact with me.

I'd wish more would stay though instead of just run past to the next grinding area without so much as a glance.
Funny thing is I am often met with surprise when I say no to grinding. And people find it quite odd that I've been a Worshipper for quite some time without reaching the highest level, something most people do in.. days? I would recommend trying though! Stop grinding and try to think about what else you could do. It might be fun!