Too carebear. If you lose enough in a rwz your account should get deleted, subscription cancelled, and all cartel coins voided. Just think of all the money EAware could make by forcing people to resubscribe!
Anyway, in all seriousness I don't really see the point of penalizing players via the valor rating. The only valor level that truly matters is 40 so you can trade in regular comms but beyond that it is just a title really. Plus, there is this thing called rated which measures win/losses for those that care about it.