You guys are cute. I posted two good ideas and you all still argue over XP/SP loss. Let me say this again, we don't have to have SP/XP loss but there needs to be a penalty greater than sit down for 3 minutes.

* All gear should break at 0%. Makes for smarter play and a better economy for repairs and crafters.
* Some gear should be Break On Death. Make this gear have special stats. Players will try hard to keep it.
* No instance should have an aetheryte, and if it does then put it at the start of the instance. This will make failure assured if a party wipes too far in.

There you go. No SP/XP loss at all.