Think about it:

1. PKing sucks because you lose your gear - it would encourage non looting.

Counterargument: The risk increases the appreciation of victory.

2. Classes like necros that are good for PKing and not XPing wouldn't have to be a pain in the ass third groupmate.

Counterargument: Not really a counterargument. More just to say for the record that I consider a necro an excellent groupmate for ranking. Evils don't have to rank on goods anymore. Keep that in mind and you should figure out what makes necros so good.

3. People would TRY to pk more because of a greater reward.

Shouldn't the rp reason be sole reason? Even if the rp reason is "I want people to think I'm badass?"

4. People would learn by doing and not have to post as many dumb questions!

People can already learn by doing without posting dumb questions. They choose not to because they think asking questions is a quicker and more effective way to success. Ultimately it isn't.

5. There would be more heroes, and less newbies..

A hero and a newbie are not mutually exclusive. My first characters all heroed and I'd still say I was a newbie in most respects.

6. It's pretty well balanced, it seems to me - although I was hoping for some discussion?

heh. Sadly I missed the actual suggestion itself.

It would be easy to code?