The PVP area must be removed. Or any quest relevant NPC must be moved outside the area.
Today I helped Cadwen to deliver a "Keg of beer for Filch" because he alone was too weak. I dropped the keg there - and we got killed.
What if the keg was stolen then? Would the quest for Cadwen be ruined forever? No player would dare to enter a PvP area for a quest, we all know how risky any kind of break in a quest is.
I did not even know that "Camp Banished" is a PvP area at all. I got no clear, unmistakable warning. I always took the camp only for a roleplaying incentive. The waysigns warning to "enter at your own peril" are by far no clear warning ... Instead, I would expect a system message, similar to locking and unlocking a door lock, while entering or leaving a PvP area.