Again i think removing xp loss or cutting it down drastically would be better.
It would mean you can do more fun pvp at all levels, so i tend to think people already playing on the server would roll alts just for the sake of pvp. I would.
That also means that the influx of people starting fresh on servers now got potential partners to group up with (or pvp)
Thats whats needed i think, if someone starts on server and it feels alive at the low levels instead of ghost town zones, it will help the server to keep that new influx of players
You could always raise the xp to a point where by default the xp loss becomes negligible, but i think we need to keep at least some classic grind
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