Yes teleport jumping is a problem in that in a world so vast, you are going to use 10% of it. It's no difference then an instance game with scenery.

Making teleporting crystal only does have a good effect (and yes other forms of transportation are also needed at some point).

To offset death warps, make one of the penalties of weakness a deduction in anima. Combine that with various other effects and you have a sizable hinderance.

Sure it'll create a bigger time sink, but the game is a time sink anyway.

If we have all this teleporting around, might as well just create a town and instanced dungeons. Forget the world map.