Towns are too crowded and if we have red names, everyone can see you can be attacked. Which means you are GUARANTEED to be attacked while banking, or doing basically anything in town. Even MK bank will always have some people in it. Now it would be cool if towns didn't have overpowered guards that can oneshot you, preventing you from clearing up the place before banking. If i could go to the MK bank with a couple friends, kill everyone in the vicinity, and THEN bank it would be fair but then everyone would be a free game. But there's nothing "exciting" about going to bank and getting killed by 3 dagger veelas before you can even react, likely losing your most precious items (what else you're gonna store in the bank anyway?). If you do react, then you can't even attack someone that you KNOW is going to help the attacker but didn't do so just yet. Anyone can simply precast flamestrike knowing you simply can't do shit about it because if you do, you'll get instantly killed by lictors. And if there's no system that makes the attacker immediately go grey and become free game, no one would be able to help YOU, even if they wanted to.
It's not wilderness. Outside a guarded town, everyone is a free game and if you see someone, it's up to you to decide whether you proceed hoping they won't attack, retreat, OR attack first. Third option, and, to an extent, second option don't exist in town if reds can be freely attacked by anyone. You cannot attack first because there are overpowered guards everywhere, and you cannot really retreat because towns are crowded and there's no direction you could retreat to where there would be no threat - it would be like running from one dangerous group to another dangerous group.
It would be basically the same thing as just outright banning all people with 5+ MC from towns and having guards attack them regardless of reputation. Which would only result in people using alt accounts to enter towns, like they do now for low rep towns, and i fail to see what's so exciting about it. Any system that forces you to game it by using alts is a bad system.