I like pk drops, but euro mir3 had death drops from mobs, pk didnt drop. Global had the wemade buff with all drops switched off if i remember rightly. Euro did have an exp penalty for dying, wasn't massive depending on level was around maybe 0.1%, this applied to pk and mob deaths, couldnt de-level.
I think the best way to suit most is something of the following.
below level 22 - no drops from mob/pk death (unless you are red)
level 22 -33 can drop from mob death no pk death (unless you are red)
level 33+ can drop from mob/pk
SW/MW wars no drops from bag/body during war.
Guild vs guild declared wars, no body drops only bag drops when pk'd. Mobs still cause body drops as per above levels. Make guild wars have a cooldown so they cannot be constantly spammed.
If level 33+ and killed by someone over 10 levels higher than you then no body drop, but can drop from bag. (unless you are red)
Euro Mir3 had tiered item rarity which dropped from body less often - something of the following to calculate death drops
0-500 pk points, max 1 item from body, 501-1000 max 2 items, 1001+ max 3 items
Normal item - 5% chance to drop on death, quality items, 1% chance to drop on death, rare items 0.1% chance to drop on death. This is a per item chance, so roll each item. If more than 1 item would drop, then select x items from random out of the ones that would of dropped. Equipped torches etc class as body drops
0-100 pk points = white, 101-300pk points = yellow, 301+ pk points = red.
People wont be dropping all their kit this way, will make killing sub 33's unrewarding and you will just curse and gain pk points, then further down the line it will also prevent higher levels spanking lower guys for their kit. Will encourage guild vs guild wars (gold sink) where people can fight without fear of losing good kit. Also means going red will still be discouraged, given you will lose the pk body drop protection rules above. Should help prevent people griefing noobs but still allow some competition/battles between enemy guilds.
Could also add in a craftable/purchaseable item (gold sink, maybe only available at siege castle to boost castle income) to add drop protection to equipment, so if it was going to drop as per above it would just remove the drop protection and player keeps item. Would only work on items on body not in bag.
Hopefully Jamie will also add in penal cave, so red players can still report/tt etc and get the keys to escape and rare chance of pot drop to reduce pk points.
death drops would not be instanced like mob drops, so free to be picked up by anyone.
Sure jamie is open to idea's, not just an opinion poll of the masses.