Im with beau on this one, I feel tnt update was a great idea. The problem I foresee is that no one will set up residences on pvp anymore. It will push more people to pve server to live. Tnt is great against towns that have multiple people online at different times to defend against such an attack (what pvp should be about), but against residences, people can't be online all the time to defend their stuff. Which at first glance may seem part of the risk reward part of pvp that appeals to people, but for most it's not worth risking everything they have worked for. Sure you can say that with better build designs your chests will not be broken into, but I really don't think people care. They want the easy way of doing things, and don't want to have to worry about leaving their stuff in an area that could be raided when they go to level, mine, log off, etc...
To further examine this issue we need to look at how brand new players are going to view this (since this is what direction we are going in).
2 servers to choose from.
1 my stuff is safe and I can do as I please.
The other is pretty much kill on sight and my gear will get stolen over and over even with protection.
Now hold on a second.
You say I can store my stuff on pve but still go raid the people dumb enough to try to live in pvp?
Count me in.
Honestly, it's the way id look at it. It just makes more sense.
We need a way to incentivize living on the pvp server as well as limit what can be traded between the pvp/pve server.