XP loss for much beyond +/- 5/6 levels is annoying, but I agree - you want to promote as much pvp as possible on a server like this. More than just being fun (at least to some), pvp should also be the primary dispute resolution mechanism. For that to work, anyone xping in a certain area should be pvpable by others looking to xp or camp items in that area.
A "scaling" range addresses that somewhat, but IMO is a heavy-handed solution born out of trying to solve two unrelated problems at once. A more elegant solution is to embrace the idea of losing XP only to a range of mostly "fair" matchups (IE +/- 4-5 levels), but allow people to fight others in a much broader level range, +/- 10, 20, or even total FFA.
If a level 50 warrior and cleric want to camp the ancient croc in upper guk, we should be able to kill the level 35 wizard sitting on the camp and take it from him. He shouldn't lose XP, but he should lose the camp. Under the current rules, the level 35 could KS the two level 50s to his heart's content. That's just not in keeping with the spirit of a pvp server, IMO.
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