Sounds good to me. Call the NPC "Johnny Hardcore". When you talk to him, he says two things "You want the truth?" "You can't handle the truth!". With a nice little Yes/No dialog.
Selecting Yes garners the player the following benefits:
No Anima
No Teleporting.
XP for levelling reduced to 0 when not in a full party.
When you die, if you don't get a rez you lose 20%xp to next level, 10% if you get a rez. Losing levels possible.
NM spawns set to 72 hour timers.
Anytime you try to claim an NM, an NPC will spawn and steal your claim, it will then proceed to pwn in front of your face.
Did I miss anything?