If you heavily commit to PvP, you will be rewarded. It will be risky, but the rewards are designed to make it worthwhile. If you'd like to dabble in PvP, you will still be rewarded and won't risk as much. We hope to entice more people to be involved in PvP, without making it a requirement.
My hope for this game is that the risk involves the possibility of losing your equipment and inventory. As much as I hate the choice of UO devs in making Trammel and therefore a safe zone for people, I think it would be the best choice for this game.
I'm sure there will be safe zones in the game where people can't loot from you, or even attack you. I'd like to see some high-risk high-reward zones where you can loot and be looted. There would be guild cities, resources to fight over, etc, etc. UO has shown that it doesn't marginalize either the people who just want to do PvE or the hardcoe PvPers.
Lorewise, my idea is this. Consider that there will be an NPC faction in the game that has exerted control over a portion of the game world. Think something similar to the New California Republic. While it isn't 100% safe in the wilderness, player characters won't be able to attack other player characters. This NPC faction would hold a considerable amount of territory including multiple towns, etc. Outside of this safe zone its more of a lawless area where players can fight over towns, resources, etc.
Honestly, I think more than anything this rests on equipment available in-game. If this game is heavily gear based ala World of Warcraft, this system will fall through. If the game allows players to be combat effective with some 'vanilla' equipment as do a good number of sandbox MMOs then this system would work great.
PvPers would be rewarded at a high risk due to competition/theft of equipment from other players, those who wish to PvE could remain in safe zones (that would still be a considerable portion of the game world).
I see no reason why PvE would have to suffer at the expense of PvP, and I see no reason why PvP would have to suffer at the expense of PvE under this system. It very much depends on the developers making sure that players are not forced into a particular path because it is a clear more profitable choice. Some people get a lot of enjoyment out of PvP, some get a lot of enjoyment out of PvE, and some get a lot of enjoyment out of being pure crafters. I respect that, and I want to encourage that.
In lawless zones there might be players fighting for control of a player (or NPC) built city on a relatively clean source of water. There might be raiders who prey on any travellers they come through, caravans of people banding together to bring goods to another town (assuming there isn't worldwide banks). In the non-PvP zones there might be a crafter seeking to build up a town and improve the life of the people, making equipment, etc. There might be raiding parties going to kill NPC raiders harassing a village or to kill an infestation of radroaches.
What do you guys think?