I recieved this answer back from Jordi in less than 12 hours, which is really impressive considering the weekend he's probably having...
"We’re going to set ‘evil’ players to red names and give them more death penalties soon. Good players will be able to attach ‘reds’ without as much repercussion. We need to check on a few things with death to make sure they are working 100% correctly, for example, evil players will teleport to their totems upon death.
I hope that answers your concerns. We will continue to add balance to the good vs evil as we see how the game evolves."
Thanks,
Jordi Grau Davis
Notorious Games
So its looking very similiar to a UO set up, which is what i was guessing at...