There will be multiple "campaigns" with each one have a max capacity of 2,000 players in at once. You are assigned to one when you roll the toon.
So, it kind of is instanced, but who knows how many players will be assigned per campaign.
i mean not instanced like repetitive battlegrounds, which resets after a half hour, where any map progression is absolutely meaningless for your realm.
the campaigns never resets. not even when the points will be reseted after 90 days.
In case you didnt made it to level 10 in the beta (or was not in it). The PvP in ESO is well made.
"The last pillar in ESO's endgame is the Alliance War, which is designed with the PvP player in mind. Players of all three factions will meet in Cyrodiil (a zone roughly nine times the size of a normal map) to wrestle over keeps, resources, and bragging rights."
Massively Joystiq - Preview on PvP
PvP is completely non-instanced on one really huge map, with keeps and everything. Three realms like Daoc. I played it in the beta, and its amazing fun.
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