We are mercenaries, yet acquiring skill points is vastly more important than acquiring money. SP is vital in this game because almost every item requires SP to use, and it accrues so slowly that it makes the game into a grindfest; this is why people AFK farm. The current SP system encourages us to play as a form of work when we should be playing because we enjoy the game, or because of the metagame. The SP system also creates massive gear differences between the new players and veterans which leads to them getting stomped as soon as they graduate from the instant battle academy, and this is a serious issue for Dust's retention of new players.

The solution is not to go to a fully passive SP system like EVE because although it would end the SP grind, it will also create an insurmountable gap between the newbs and veterans.
The solution is not just simply give players more SP from battles because the game would lead to players quickly unlocking everything like a CoD game, which would be bad for longevity.
The solution is not to remove the SP system, because it adds depth to the game and character building.

What is the solution? I found this thread in the feedback/requests section by Vyzion Eyri that suggests this:

Items should no longer have skill requirements to use them.

Since skills would no longer unlock items, they should instead ALL provide bonuses for items to improve efficacy. No more useless skills.

All skills start out with a 2x multiplier, but the more SP you spend, the more SP cost multiplier increases. After spending 5 million SP the multipliers become 3x, and after 10 million it becomes 4x.

large cost increases from one tier to the next, making using prototype gear extremely expensive and risky to use in a public battles.

If you're going to say that this deviates too far from EVE, then you should know that Dust wasn't even suppose to have EVE's skill system. In 2009 the plan was to use an achievement matrix where in-game achievements gives you the ability to use items. Click here and read and here.

Dust is largely about risk, each time you spawn in battle with a fitting, you're risking losing it. Skill requirements for items essentially prevents us from being able to risk an item, and only holds back the true risk vs rewards nature of the game; if someone wants to risk losing an insanely expensive dropsuit fitting or tank, then they should be allowed to without needless restrictions.

Some of you (and CCP) may be thinking that the lack of skill requirements for items would make many no-requirements AUR items obsolete, and end up providing CCP with less money. A solution would be to sell standard BPOs instead for almost every single items. Also sell guns with all sorts of colors and skins.

I'm posting this here because I believe this system is best for the game, and it will help with retention of new players. The grindfest aspect of the game is one of the flaws that led to so many bad reviews. This system does not eliminate progression; SP will still be very important to augment one's character and provide advantages, but it just won't be necessary for the use of items. This makes the SP grind very optional so players don't feel forced to grind just to get an item they want.

This thread is not itself request, but a means of getting a request the attention i feel it deserves, and to have a discussion about; general discussion gets more attention.

CCP already has stanard BPOs for dropsuits, and its far less pay-to-win then the lowered skill requirement advanced and prototype gear. It would only be standards, so risk would exist in advanced and proto. It isn't exactly ideal, but CCP needs to make money somehow if the SP system is reformed in this manner.

I take it you have bad reading comprehension skills. Go reread the part about the ISK costs, and read it again for a 3rd time.
EDIT: There is a TL;DR version, may be useful for you.

So you read the part about protogear being completely unprofitable in public battles, yet you stand by your statement that everyone would use it...

Dust is about "Don't use what you can't afford to lose", and protogear would be even more expensive, 200x the price of standard (the original poster of the idea wants to double the price of standard, 10x the price of standard for advanced, and 10x the price of advanced for proto).

If everyone wants to drive themselves into poverty, then I say let them.

Did you read the OP? You would still have to grind for SP, and the more SP you spent, the higher the SP cost multiplier becomes. SP grind would still be there, but the purpose of skills would be repurposed for bonuses instead of item unlocks.
The massive increases in the price of ADV and PRO gear would create ISK grind as well.

Grind would still be present, just not for unlocking items.