No XP loss, that's why i quit FFXI. I got to 60, got my AF completed and then some yutz pulled Mushushu or however you spell that on my leveling party and I lost 4 hours of work. Instant rage and frustration and I could NOT bring myself to log back in, buy 59 gear AGAIN and do it all again. It didn't help I was a "sub optimal" job/race combo and partyfinding took HOURS.
Punishing me for others mistakes and carelessness is right out. You're going to get nobody running DF because nobody wants to happen into a party with noobs and lose XP trying to teach them things. It's not conducive to the current partyfinding and content clearing systems of this game.