On PS4 NA this exploit is starting to get attention in Zone text chat. I'd never heard of it until this past weekend. It does seem to result in an insta-kill from full health according to the complaints in chat. Once things like this make it to zone chat where even casual players can see it and learn about it, it's going to become - as you put it - way out of hand.
This sort of exploit, along with whatever it is that lets a player go through walls, ignore gates to scroll temples and attack players from beneath the ground would be a major turn-off to anyone new to the PVP aspect of the game and it's pretty irritating for those who play daily. I don't know what ZOS can do to fix, but I hope they are able to do something about it.