I actually agree that the exp loss pvp system sucks, and I don't think a lot of deep thought went into it tbh.
A lot of game design philosophy is centered around "Is this fun for the player?".
So when you die in PvP, it's going to suck no matter what - that's a given. There's a penalty for dying, and there should be.
The important thing here is does the player who won feel good about his reward? Is it fun and satisfying for him?
Coin loot always worked because it was a little satisfying to get it (icing on the cake, if you will), but it also wasn't too harsh on the player who died.
What does EXP loss do though? The player who killed you doesn't care. He's not getting anything there. I don't care if you lose exp when I killed you. I do care if I get some new item - that's awesome. I care if I get coin.
I think it's poor design and I doubt many players would defend it because everybody hates it when it happens to them, and nobody cares when they cause it to others.
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