Problem with xp loss is that if you lost it during death, you'd just go kill centaurs or molerats for a while and then return. Death needs to hurt yes, but it shouldn't take players away from interaction with others. Because that's what levelling is: lonely grind. Besides, minmaxed pvp powerbuilds would have the easiest time since they can farm xp fastest.
So you mean that the only interaction with other players in Fonline is to kill between they?
you cant lvl-up with friends, or farm, or go to x place for fun, or recolect stuff to craft, or destroy Necropolis. winning xp in the process?
do you know that the 90% of my best fights happen in the lvling lands? (like the molerat area left of NCR, or the ghoul area near Necropolis)
did you ever see the game like something more than grind and farm pixels and kill pixeled humans?