Players need protecting to start out with in a game. Let them find their feet and get to grips with how things work, then bring on the pain!

While players will cry and moan that it hurts and some may well quit it is about creating a long term fan base. Look at all the new MMOs coming out. Most have no death penalty, and players have very little emotional investment in their character.

Darkfall is an amazing game where even grinding PvE mobs or gathering is a stressful experience. Yes death hurts but victory is sweeter because of it.