Personaly i hope there is a big penalty for death... it will make the pvp aspect more of a challenge. That way you wont have a bunch of powerfull pvprs runing about like babboons killing every crafter..
and while i play pvp ill have to make a choice and decide wether the risk of attacking the current target is worth it or not... as in is he alone.. is he really a unlucky crafter im watching or a fighter.. cathering crap for a friend.. can i kill him loot him and run for cover before his buddies make it to me...
if you dont have the penalty you will have a bunch of gankers just running around killing everyone like you have now... where is the fun/challenge in that