So after reading this entire thread (whew...), the best defense I can see so far AGAINST j2gay's suggestion is that it's potentially exploitable. To that I can only say the following:
Are you f***ing serious?
Are you really so blind as to not see how various facets of the server can be and ARE constantly exploited on a daily basis, or do you just choose to ignore it?
Dark rooms: illegal. Still used.
Bounty feeding: illegal. Still used.
Duping: HIGHLY illegal. Still done.
Harassment (obvious but veiled with various excuses): illegal. Still done.
And the list goes on, including but not limited to God knows how many illegal but difficult to detect mods. As stated before, any system will have some sort of exploitable flaw, and people WILL find it and WILL use it. The key is trying to limit the flaws to something easily monitored for swift enforcement.
That said, I believe that j's suggestion has potential and merits a testing phase. macura's idea wasn't bad either, but it seemed to be treated as an alternative. Why not both in the same system? Sure, experience loss for camping a newbie might slightly deter mindless and continuous camping, but then again (as someone pointed out), a couple of nearby zombies could fix that loss. For the true a**hats (since that seems to be the word of the day. I like it.), the bounty would come into play. True enough, there are a number of good-natured players here who hunt down the newbie killers. They would take advantage of this even without the promise of a reward. I certainly would. That's right up my alley.
As for the exploit of them transferring their money to a buddy when they go on a newbie-camping spree to avoid the bounty loss, stupidly super simple solution: negative money. That's right. You killed 50 noobs (or more in reality, the same two newbies ~25 times each) and racked up a nice bounty on your head. You tried logging out to waste it off, but wait! Apparently this bounty persists offline. You have to be ONLINE for the duration for it to run its course. Uh oh. Looks like Harry the Hero took you down and drained that (random number incomng) 1000c bounty right out of your pockets. Good thing those pockets were empty thanks to your banker buddy. Let's /money just to grin at that solid 0 that dropped to a 0.
...-1000 coins?! You mean I have to pay off that debt before I can have any hope of class/profession swapping or buying goods? THIS SUCKS! GARBAGE SERVER! RANT CRY PISS MOAN COMPLAIN RAGEQUIT!
Looks good to me.
Now don't misunderstand me. I agree with the others that 'evil' players add to the game, but as stated before, there's 'evil' and then there's 'a**hats' (there's that word of the day again. Mmmm...). Evil players will strike intelligently and methodically, and then duck into hiding like a smart criminal would do. They will gain the same feared reputation, the same enjoyment they get from playing that role, and the same instant-gratification risk-vs-reward profits that come with that style of play. The difference is now there will actually be a risk which, before, was practically non-existent, and the a**hat players who simply want to vent their frustrations or simple sick-mindedness get a swift and constant d***-punch.
D***-punch... Can that be tomorrow's word of the day? Sorry. Got off-topic for a second there.
Anyway, the tl;dr version: Good idea. No decent reason for not testing idea out. Extra ideas added that would mesh well with it. Ship it.