Losing xp: Potentially cool idea, but ehh.. no. If you want to be hardcore, how about some item loss?
"BIND RUSHERS! Omg, the bind rushers! *freak out"
Easily resolved -- in fact, it already is! You spawn oom, with lost corpse, lost coin, potentially lost item, spells you have to re-memorize, and they are probably preparing to corpse camp you. Even naked monks don't even do that much dps. I don't see what the big deal is.
I don't want to lose my items!
Suck it up, that's why there's rules: You can't loot no drop items, 1st, 2nd, range, ammo slot weapons, bags, items IN bags, and so on. Also, if you die with something in your hand, it drops to your inventory slot. Most people generally keep all 8 slots full of containers so that if this happens, or you get killed after disarmed, it goes in your bag and not your inventory. Most people carry 2 sets of gear. I'd like a bank expansion, though, if this were to be implemented..
It's also very fun to get a set of all no drop pvp/safe armor! Even the crappy no drop items are worth something because it's like taunting an enemy with a full set of no drop gear
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Then the pro skillz baddies can keep on their gear -- before you die, you try to bag as many items as possible