thank you kilgore, this is the right choice imo.
i know my opinion doesnt mean much but i promise i speak from an unbiased non-ego driven perspective. i only want this server to get better, and succeed. no other server has come close to matching the "fonline experience" that reloaded has.
the no loot thing can work to create more action, but i think it simply detracts too much from the thrill of the gameplay to have loot removed entirely, but its a good idea that has some merit.
that being said, there are other alternatives to reducing death penalty while still keeping the game hardcore loot.
asheron's call had a very interesting system called death items. death items were high money value items (diamond necklaces, gold rings, other types of items in this category) that dropped in place of your armor, weapons or other gear if you carried these things in your inventory at the time you died. this proved to be a very popular mechanic because it allowed players to essentially purchase insurance for powerful and rare PVP items, helping to nullify some of the penalty of dying in PvP.
now these death items didn't work every time, but often enough that it helped create a functional economy where goods had non-inflating ingame money value that helped to maintain the overall background economy for a long, long time by providing both a time and money sink (in our case, caps sink) to players.
im not saying this could or should work in fonline, but just merely stating an example of a very successful anti-penalty system from another popular hardcore pvp title, that helped to ultimately keep casuals and veterans alike interested in the game long-term by providing them a simple yet important mechanic for which they could grind, kill, or craft to get items that functioned as "pvp insurance".
some of the most valuable death items in asheron's call were more valuable than the most epic pvp loot, because having them meant you could wear the most powerful items in pvp without much fear of giving them to your opponent upon death.