People can and will deal with exp loss accordingly, but the problem is that the way to deal with it is to never engage in a risky/challenging fight.
Would people rather a constant brawl throughout their leveling experience?
Or would they rather a game where sneaking around and leaving/logging at the first sign of competition is commonplace?
I'm not here to argue one or the other, either way people will make it work and adapt. But the issue is that one of these promotes pvp and the other promotes survival.
Both have their own merits of fun/strategy. But I'd guarantee removing the exp penalty would greatly promote how often pvp takes place, as well as increase the server's long-term population.
Once twinks exist a few months down the road, if the exp loss is still in place, I sure hope there is something else in place to keep new people interested.
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