I have been wondering, since I see alot of conversation about PvP and PvE. What is going to be the Death penalty?. I have seen different kinds of death penalties around various mmorps. What I´ve seen are:
Loose Items - Not my favourite at all since you loose things that might have involved alot of effort to get.
Damages Equipment - Doable if you can repair your equipment fully on an npc for some money.
Soul Damage - Basically the same Idea of the Equipment damage, but instead of getting your equipment
damaged, you are a bit weaker every time that you die. To fix this, you have to heal your soul, paying to a soul mender to do it.
Loose experience and money - A big pain most of times, and even more at high levels.
I think that the death penalty should balance in how easy/hard would be to be defeated ingame. Of course, nobody likes to loose experience, money and/or items. even less if you die really easy ingame.