Yea, but the big problem with that is that the XP for small battles with low or medium tier gear is that the XP isn't all that good. It's AWESOME with high level equipment, sure. But that's just another reason to not fight until everyone has platemail.
By the time you store up enough platemail I will be Lord Dwight E. Patton and will earn even more xp from the victory over the nooblord Garem who has never fought a battle.
I never said it had to be tied to gear, it could be number of people in the battle, larger fights give more xp but not necessarily better equipped fights.