Slow xp, item loot and xp on pvp death would result in a sub 50 pop server 1 month after release, and everyone playing wizards and druids.
While a stricter penalty for dying in PvP isnt a bad idea, we're no longer 13 years old playing EQ in mom and dads house where losing 2 hrs of play time to some wizard pressing a nuke button twice from some ledge he hides on would not float with most of the player base.
If you want a server like that you end up with a player base like the Qtips of the world where they spend 95% of their time playing a class that is OP in it's sub-maxlevel PvP range refusing to level to a range that diminishes their classes' capacity.
Strictly speaking you want a server for ^ reasons.
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