I can confirm this is happening. I sent in a bug report about it yesterday. It only sends you to LA when you hit the options for Black Citadel and Lions Arch (of course), all of the rest of the city links are fine.
I agree with this suggestion, if not the gift of battle at least means of obtaining badges of honor. I also think things like Jugs of Karma and XP items. While splitting spvp in GW1 made sense because you could make pvp only characters, I think its kind of hurting spvp in GW2 because there is no distinction between pvp and pve characters.
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