In response to Garthor
Garthor wrote:
Actually, no, if you put any kind of "risk" in pvp, then it JUST becomes a grind to the top so you can spend the rest of your time beating down newbies so that they can never advance.

What that really comes down to is what the motivations are behind non-casual PvP (what I mean by casual PvP is situations like a duel where it's more or less friendly). If the main motivations include looting other players' corpses and gold, then yeah, a lot of ganking will happen and the newbies WILL be frustrated.

If the main motivations are more like World Territory Control, or something more casual like Instanced Battlegrounds, then I think that ganking shouldn't happen nearly as frequently.

This pretty much means that you shouldn't drop stuff when you die.

Will PvP still happen? Of course, if the game allows it. People like fighting eachother to see who's better, but that's not a problem at all.

[EDIT]:
Another way to properly pull off Open PvP with full drops (as in you drop your entire inventory) is to follow EVE Online's model, where there are areas of the world that are policed by NPC factions. If you kill people, then you will eventually become outlawed and will not be able to enter protected areas without getting killed almost instantly. What this pretty much means: It is the player's choice to venture out into places where they might get killed. There are places that are dangerous and places that are safe, and the player should never be forced into either.
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