I disagree regarding PvP. I think it should have pretty much the same penalty.
I know some aspects of PvP are already decided, but I'm still hopefully of wandering around being
free to kill other competing (for resourses perhaps) players outside of duels but facing long-term penatlies as well if it wasn't deserved. (In a wasteland, I presume "outlaws" can be themselves killed with reprecussions).
Say there are "arena" fights. The rewards should be very real, but so should the game death penalty.
If my character is racing against some other character to collect a bounty or something, I should be
able to attack my competitor, but know that if he were to get the jump on me, the death penalty is much more severe than not getting the reward.
tl;dr the game is very long, not always combat orientated "deathmatch".
Obviously there undoubtedly has to be protection against people not playing the game (trolls) killing other player characters
and npcs for the sake of harassment of the player, and there also has to be some limits so players who want to play mostly against the environment can do so without being killed by a player with honest intentions of playing a character with dishonest ones. Why do games studios have to fight and die? War, war never changes : (