Ever since The Burning Crusade, Battlegrounds have taken a back seat to Rated Arenas both in respect and rewards. That's about to change. Rated Battlegrounds will have the exact same rewards available as Rated Arenas with the possible exception of the Gladiator title and associated mount.
Blizzard employees have stated in plain terms that going forward PvP is going to be balanced around Rated Battlegrounds. Arena players may hate it, but they're painting by the numbers here; most people don't participate in Arenas and don't like them so Blizzard is betting big on Rated Battlegrounds in Cataclysm.
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