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The concept is that the game skews too much towards people who PvE grind if you don't have item loot. Once the players who zerg rush to 50 and for the best items achieve that goal, then they start to be able to control everything
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This isn't Velious. The people who hit level 50 first won't just gain some huge advantage that can never be overcome. Almost all the resist gear can be traded and a lot of it drops from level 30ish mobs, it's pretty much just Tranix crown and diamond jewellery that you can't get while leveling or from camping a few pretty trivial mobs in lguk.
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the most popular PvP Everquest server back in the day had the 1-item loot rule
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RZ was only really the most popular PvP server because it was the only one available from the start, so everybody who wanted PvP started there. The next servers only got the rerollers and latecomers, everyone else had already got started on RZ and many didn't want to move to a new server. You'll also notice that itemloot was removed from all of the servers that had it and has never been attempted since in any MMORPG because of how much it fucks up the game.
As has been pointed out by various people, the real PvP is about zone control and the prestige of winning fights. Looting items is not a crucial part of any of it, and it completely skews the PvP environment due to how many people will avoid fighting, how many will play naked casters, how people will behave when the prospect of losing or winning items comes into the picture, and how it screws over the already disadvantaged classes. People act as if there won't be PvP without itemloot. It has been proven time and time again that there'll be more without it, not only because people can PvP more freely when they don't stand to lose their stuff but also because itemloot tends to reduce the potential population size. It shouldn't need to be mentioned again, but VZTZ grew from like 40 to 200 players when they removed itemloot.
Itemloot is just too much for most players. Call them bluebies or whatever, but they'll make up the bulk of the server. The hardcore minority will not sustain red99 alone. As for twinks, the hyperbole is useless because twinks were never a problem that early and has never been a problem on any emu server because we don't have the thousands of players that live servers had. Even if a few twinks do pop up, that'll still be far less discouraging for new players than the constant risk of losing their gear.
Itemloot doesn't work, doubly so for an emu server.