Full loot is what makes FOnline interesting, removing it will just spoil the game
This game ain't for you.
Oh it'd be great is using the binocular cursor on the character and it says something like: "He looks like one mean mofo" "He's some sort of tough ass" "He has a charming smile" or something like that. Not just "Bad" "Good". Then the player could use a role playing approach to him.
I can't understand, you want to make PKs recognizeble, or be able to shoot at them without being punished? If second - then it's the worst idea ever. If first, then global karma can be implemented, and you can just see he's neutral/good/bad by scaning him with binocular-cursor.
Have you ever thought that it is actually good that binoculars are hard to use on running characters? You won't know if he's good or bad! You may think "How is that good?" But it shouldn't be so easy to tell if he's good or bad and he should be able to try and hide it.You need to inspect him if he's good or not. Just like to see how much hp he has. Maybe this would be only available to people with awareness perk? I think that'd be pretty neat.