IF you were to add monsters - the only way that I would see that as a viable option is to have the XP gained be considered "Smuggled" XP. You can only convert a certain amount of XP at a time - and upon being killed, you lose the same % as you would if you were foraging. However - the dropped XP does not get picked up by the other player - otherwise, it would turn into the same dead zone as it is now. I think the biggest issue with TA is the unbalanced PVP system at this point in time - ranger and mages have distinct advantages so that limits the number of players who want to participate in PVP once they realize these disadvantages.
That is a very good idea; "smuggled experience" also prevents a large amount of experience coming in by having it vanish on death!