A newer player perspective.
I so far have found the penalty a bit harsh, I am fine with that, aside from some issues that is.
Most my deaths are from not knowing the server!
I do a lot of solo adventure to try and raise my level to be more of a participant in RP, or just to feel like I can contribute in a battle or to a story. The problem with that is many solo quests have monsters that can two or three hit kill you. For example, ‘Peter Wolf’ quest can be gotten at 4th level and some of what you encounter have a huge hit + and often do 15+ damage, that is a lot for a 4th level character to take. Or when I am in what I assume is a lower level area like the West Swamp and some much higher level than me monster kills me, I am there to kill frogs, I did not know creatures that strong would be there. As a new player I have had lots of frustrations trying to learn what quests or area's I can go in without getting killed. If I was a seasoned player of this server, I think that much of this issue would go away, as I would know what monsters I would be facing, be able to prepare and avoid places I am not ready for. Learning the area and quests caused a lot of death and frustration. For example, my newer character rarely even died because I knew what to expect, however now that he has passed the old characters level he is starting to die more often as I try and find new places more appropriate to his level. I have gotten so frustrated I have just been crafting the past few days, not willing to explore.
Feeling as if I am stuck, reduced to not being able to add to the story or even adventure alone is what I feel will drive new players away, it almost pushed me away and still threatens to every day.
The other issue I have is the death by bugs, rare as it is, getting penalized for a bug really sucks! This I know is something we all have to just live with.
Of course, I cause my own deaths by doing something stupid, or knowingly risk it. I do also play at work, I own a small business, and sometimes I must step away and if I die or the group moves on without me that is ok, I am fine with that and I apologize for when I leave you all wondering why I went silent.
For me making the solo quests not so deadly, a bit easier for noobs like me to get a feel for the server would realty help. You don’t get a lot of gold or experience from them anyways, you can make more gold looting bodies of the undead in town during an undead uprising event, I once made several thousand gold just cleaning up the corpses lying around. Probably should edit the loot drop on them.
P.S. I do want to thank those who have included me in the story, it is much appreciated.