I did. It was overly complicated for something that was essentially just a glorified PvP toggle.
No. In essence it's creating a separation from those who NEVER PLAN TO PVP and those who do. Do you agree that people who NEVER PLAN TO PVP should be treated differently, or do you think they should have to play by the same rules as people who pvp? I personally am willing to give people that, if they want to do pve only, then that's cool. There is no toggle, it's just THEY that can't pvp, and then when people PK them it is actually an event.
It's an extremely simple system. Alas. I need to work on simplifying things because I feel like what I'm saying is simple, but I guess it's hard to understand. To be honest, it's extremely frustrating! I don't blame you, but I also don't understand. Maybe you are being obtuse on purpose, but I'll give you the benefit of the doubt. I wish I could explain it better.
Main idea: separate those who never wanna pvp from those who might sometimes pvp. Draw a big line, and then within those two categories, make balance changes for how punishments are doled out. It has to do with 'consequence' not with 'pvp toggle.'
Edit: like you said actions have consequences, the more severe the action, etc... killing someone who has NEVER PVPED would be a severe action and should have a severe consequence.
That's just one example based on a skim of one of your posts.