Ruleset is almost perfect. Only two things:
1. You say PvP deaths will lead to a "reduced" xp loss. Guess that's fine, as long as the reduction is large enough (like 1/2 or 1/3 of regular xp loss).
2. Level 1 characters are protected in cities, that's great. However, as a level 50 character I won't be safe in cities, not even at the bank? Unless there are some high level NPC guards around (and maybe even then), that sounds like a lot of potential for griefing. Just get some people together and gank those guys who just picked up some plat at the bank. You can blind or fear them and they won't be able to return the plat to the banker.
Regarding the dynamic level range, that sounds great as well. How long will it last? E.g. as a level 20 I cast a buff on a level 30 player. For how long will the level 38 players be able to attack me?
|