I don't have a character in VR, so what I am about to say could be total nonsense. But I've formed this opinion based on comments by other players, and it feels logical enough to me that I thought was worth sharing.
But essentially, my thought is this: once a character hits level 50 / VR 1, character progression should end. This means no more new gear levels. A character who has finished the main content of the game is done, and that character has reached end-game. There should be no need to do the VRs in order to reach maximum vitality as a character.
From what I understand, in end-game, you want to make your character the best it can possibly be. Create the best gear, and so on. Therefore, remove those bonuses from getting VR levels.
What does that mean for VR1-12? VR1-12 WOULD be end-game; I think the content the VRs have now would be great for this. For the soloers/questers, you have the other faction zones. For people who like to group, there's also the other factions, plus the veteran dungeons and Craglorn. For those who like to PvP, there's Cyrodiil. And for those who like alts, you can start a new character with no real loss.
The problem I'm seeing is that right now, to really reach what people are considering end-game (making your character the best it can be), you have to reach VR12, which is a huge grind. Where this really sticks out is in PvP -- if you want to be the best PvPer, you HAVE to be VR12 because a VR12 has better gear. And for PvPers, doing all this additional non-PvP content just to be viable is not fun.
So what, in my opinion, should VRs be?
1. Just a number to give a sense of progress. All the levels themselves are optional and doesn't actually make your character stronger, but the number itself can increase. In this case, it doesn't seem like a problem that it would take forever to level -- you want it to take awhile so that you can keep people entertained with the same content for as long as possible.
2. Cosmetic rewards. I believe there are cosmetic outfits/disguises you get for reaching certain VRs? That's fine. I also wouldn't have a problem with there being VR armor that LOOKS better than non-VR armor, as long as the stats aren't better than non-VR armor.
3. Skyshards. While more skyshards IS progressing the character, I personally think it is progressing the character in a way that doesn't actually make one character better than another. Say you magically got enough skyshards to somehow get every skill in the game, that doesn't really make you a "better" character -- you can still only use 10 of them at a time. If anything, skyshards are more of a matter of convenience -- stopping you having to respec just because you want to try something new.
So in conclusion -- VRs should be end-game, and not be part of character progression.
Discuss?
Edit: Thanks to
@Psychoke for the attribute point correction.