Reginvalt

Permadeath is interesting. But unfortunately not really viable, and the same goes for all attempts at in-game penalites or debuffs for the attacking PKer.

/looks at the topic name/There is no PK's in free pvp sandbox games. So there can be no penalty for something which doesn't exist.
Permadeath - it is too severe. Because in pvp game you die alot and heavy penalty will interrupt ingame life (ever-lasting battle, coz this is pvp game, better to say) severely. For example there is full loot in EVE, but ships and modules are mostly cheap, and you may die 5-10 times a day

The MMO would need to be level based, and have leveling zones all the way to max level that had no PVP in them.
Any character can play to max lvl in complete safety.
However, progressing at end game would require characters to enter the "wild lands", a lawless territory where they can be attacked by anyone at any time, but the only land where they can progress their character and build towns and cities by pooling their resources.

This game is casual and carebear like any other casual mmo. Free PvP game starts from big open world without any carebear hideouts.

The problem is within the concept itself. Who would ever want to be the sheep that is hunted by wolves?

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1) Well, there is no PK's in PvP games. They exist in PvE games only.

If you speak about griefing players in PvE game, PK is a scum, yeah.
If you speak about PvP game where you can put enemy in a prey position gaining tactical advantage - PK is a noble PvPer.

2) About your "nobody wants to bo a sheep". The problem is that there are PvEers and PvPers. PvEers ARE sheep even if they play such game where they can be never killed. Because "being a sheep" means unability or disinclination to protect yourself and your assets from another players.

So the main problem for current PvPers that the vast majority of games are created for casuals, PvEers, school kids and so on, and there is no decent pvp in such games - only arenas, battlegrounds and duels, which are just poor excuse compared to free open-world pvp.