Are you arguing the item loot will increase server pop or just that it is classic? I can't imagine that someone playing on blue would find this appealing and decide to try red because of it.
Blue (and new red) players can barely joust with fleeing mobs that change direction too fast. I consider myself in this category so no judgements here. My point is that new players aren't going to feel confident that they can beat an evenly geared player much less a twinked out one. They'll just see the potential to lose gear that they spent hours camping.
Griefers will still grief they will just do it on naked wizards and mages.
I'm not entirely opposed to item loot just don't see it increasing server pop
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