How about a big PVP match where a compass points to your target. Once you kill that person you get his compass and his target. Long as you make sure that you never are hunting the guy holding your compass until the very last one, it would make it rather exciting to hunt them down. Would at least be intresting =)
I like this idea. The only immediate problem I see is the Live Map making it real easy to locate a player. Also, “PVP Match” should probable be contained to one world, or a portion of a world without being able to use /home for fast travel.