They should have a wilderness for pvp and pve in the same location, but at a trade off for slightly higher chance of getting rare loot to offset the danger. For killing players it should work so that if you have killed 1-4 players in the last 3 days you get an orange icon next to your name, killed 5-8 players in 3 days should have a red icon next to your name, killling any more than 9 players result in a black icon next to your name and being put on a "wanted" list where killing said player will give a reward.

I know a lot of you want to kill each other. But seriously all PVP does is result in fragmentation of the community and the down grading of anything imaginative due to competitive calls for skill and balance. It would be fine if it just stayed in PVP arenas, but it never does resulting in less mic use, harassment on forums, player bases being ostracized like casual or PVE players while insulting them at every opportune. Magic and power weapons become scrutinized and what you get eventually is forums dedicated to MLG or the ALG that conspire to keep games the same to cater to their views only resulting in Pro games that are fun for them, but everyone else just gets destroyed and this results in either fostering a few driven players to get better becoming them, or the larger majority looks to games like Call Of Duty as an example as what had happened to Halo. The real question you should all be asking is how do we incorporate PVP and improve on it so its fun for everyone so we build the community instead of tearing it apart?

I get the idea, but somehow I feel that it will take away from the actual story aspect of the game. If its in a different mode of the game then fine, but not in the overall communal area.

That sounds like a pretty good idea to me.