PVP servers should be wiped after people did things they shouldn't

If you wish a fresh start, you have the option. You can roll on a new server or use the recreate character option. There is absolutely zero reason for a innocent third party player to have to endure losing all progress on their character or losing all of their buildings because some people did a thing that may not even impacted the server they are playing on.

There is only one reason and one reason only for a server to be required to wipe. That is when the server will not boot up on a restart, and only if all measures have been exhausted to fix that issue. All other reasons are simply subjective.