I often think about ways to keep people logged on with something worthwhile to do when numbers are low. When people get bored a log out because there are no enemies, etc. it's difficult to get momentum #-wise. Because when their enemies log on, they have already logged out so their enemies don't stay on long...and it repeats.

Worthwhile things to do with no/few enemies: gather preps, improve your character (skills/spells), gather EQ, farm EPs.

For established chars the incentives to stay logged on diminish. You're char development and EPs are maxed. Maybe you have all the preps you can carry and your EQ is fine. I don't know how to encourage staying logged on in all cases, but I do for shifters in this case:

Every time you find a sleek black rod, you permanently gain 2 HP. That way, longer lived chars are at less of a disadvantage from losing stats, but most of all, it gives a reason to stay logged on and out of your guild. I think every class should have some similar mechanism/incentive, but it's a start.

be able to quit in the same area you logged in unless X time has passed

so if you log in Galadon and it's only been 12 minutes you have to walk to another area to quit out of. but if 20 minutes have passed you're ok

Is it's totally counter-productive. This is a game. You can try to make people play the way you want them to through coercion at your peril because being forced/coerced is not fun. This is human nature.

Incentives can be fun and accomplish the same thing. One makes someone happy, the other pisses someone off. One will make people more willing to play, the other will have the opposite effect.

Imagine a dept. store that wants to sell certain items it has over-stocked. Do they:

A) Reduce the price of over-stocked items to make them a more attractive purchase
B) Force everyone who enters the store to buy one of those items before they can leave

One will solve the problem. One will put them out of business.

I don't think it will change much, but all big changes are bad anyway.

Such small change is nice.