Another thing to keep in mind is that PvP MMORPGs have ALWAYS had trouble. They're always struggling. This server is slowly losing people, but I doubt that's because of this experience loss. But on the other hand, I spare no time in saying that SOME people DO leave the server because of the experience loss when you die in pvp.
Look at Eve-Online. If PvP really was IN then it would have millions of active players, not 100-200,000. PvP is a hardcore mechanic. Without severe restrictions on how PvP happens in a game, you will cripple your population. WoW, for example, has quite a few restrictions. One of my friends plays it and has only once or twice took part - and has played for several months. That should tell you that it's not PvP that makes WoW good. Because if it were, I'd be hearing stories from my friend about how he was griefed on his way to the land of milk and honey.
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