I like the system a lot, but i don't understand why you get punished for PvPing?

I love to pvp but if it ends up that i can't enter a city cause i killed too many other players, then what the hell is the point? The whole thing seems contradictory to me. Kill other players to level up in PvP, but also gets your murder status up, and eventually you can't enter a city without being KOS? (Did I miss something?)

I think a system like in EVE would work wonders, which is what I assume the noteriety thing is. Also player bounties and other such things are what really pulled me in, in EVE and I think would work well with a bit of tweaking here.