To me, it seems like people just aren't getting the point. I don't believe gear damage is an acceptable form of a penalty. I can just run along, die a handful of times, and brush it off with "Meh, I'll just throw this stuff up on my retainer in the Mender's Ward when I log, and 90% of the time it will be ready for me when I come back!" The days it isn't, I just find some one and get it repaired real quick.

It's no real detriment to me, and I'm a somewhat casual player.

People are afraid of losing EXP upon death because it would be a real time-sink. You would constantly fear losing it, therefor you would fear death. That's the whole POINT.

This whole argument that FFXIV's combat system is too sketchy to have that sort of system in place since people die left and right holds some water, I'll give it that. It's true the way things are right now, an EXP loss on death might be a bit harsh. HOWEVER, major changes are coming to the battle system. Both in the way classes are played, and combat itself is regulated. When those changes come, barring the possibility of remaining flaws, I believe an EXP penalty should be implemented to give a sense of much needed urgency and desperation to battles. On another note, being a former avid FFXI player, I do not believe de-leveling should be included in this.

There's nothing like activating that fight or flight response during the heat of an intense battle. You just can't replicate that sort of response when there isn't something that's actually meaningful to you on the line.