I can't really take credit for this idea, it has been on the forums here and there, but it really deserves some attention.
Gold and Exp gains should be based on the level of the winning DG versus the level of the losing DG.
If you are a higher level, you should earn less reward, if you are a lower level you should gain more reward.
Same level = 100%
1 Level difference - 75% / 125%
2 Levels difference - 50% / 150%
3 Levels difference and more - 25% / 175%
Wow, that seems like some big adjustments, however, bear in mind that most DGs rarely outlevel each other by more than 5 levels (unless you are Sedna and have problems creep farming!).
However, this makes it a lot less rewarding as a higher level to take that DG out, and gives a well planned attack by lower levels a little extra reward.