Add the option to toggle the item-drop flag in PVP Zones. That way players can make PVP Arenas that would be for fun, and there would be no risk of losing all of your gear if you happen to die. PVP Zones are pretty much dead because no one wants to fight and lose stuff, it's not fun. Being able to toggle the item-drop flag inside your PVP Zone would allow for more fun and risk-free matches. I'm pretty sure this is the right flag, but correct me if I'm wrong. Enabling keep-inventory in PVP Zones has all kinds of benifits. It would allow players to create more interesting arenas (such as adding lava pits), and would make the experience better overall. PVP Tournaments would also be improved, because rounds could be quick and full of players, and there would be no difficulty retrieving lost items. It could add a lot more potential to the PVP system, and should definitely be considered.
This is incorrect. item-drop prevents you from throwing anything out of your inventory. However, it cannot override /gamerule keepinventory false - i.e., you still drop everything if you die.