I was just joking, not saying piecewise should actually do that (although I guess someone could do an "other universe in the future" spinoff fangame thing about it). Piecewise has a lot on his plate with ORO right now, I think.
If I was called to balance it though, there's two ways I'd choose to do it: Words may give you the monster depending on whatever you come up with, but the stats of the monster come from its category. So all monsters of the same category have the same starting stats. The way monsters in the same category are differentiated is by letting the players play around with the stat points a bit and giving them special abilities. As you do battle, the players level up, meaning more will, meaning more stat points and special abilities for the monsters (they could even evolve if it makes sense). Could also give monsters general items (healing potions, etc.) or give players similar stats to monsters for monster and master vs monster and master fights.
The other way to balance it is to not balance it, just make sure players have similar starting points. After all, having limitations and differences in power sometimes makes for interesting gameplay. But you need to have a way for players to overcome those limitations if it's PVP. Easiest is to make it a free for all. If it's a fight between two high level and four low level players, then it makes sense for the low level players to team up and try to play tactically. Or for one of them to try to convince on of the high level players to team up with him against the other high level player and then stab him in the back when he's weak. Or add an objective that also results in victory. The low level players can make a run for the objective and possibly win that way if they think fighting and winning is impossible, essentially creating an artifical weakness for all players and possibly a way to defeat them non-lethally too.
And really, if people complain because they died in a PVP game when they knew what they were getting into, then they probably shouldn't be playing it in the first place. When you enter a game with a GM, it's sort of an implicit agreement that the GM has final say. Sure, you can complain and present a good argument to the GM and the GM should listen to those complaints, but he has final say. If the GM is a good person, then you should trust his judgment and let him run his game the way he wants to, you shouldn't keep complaining and trying to get your way. If the GM is an asshole, then why the hell are you playing his game?