The two things are typically related in MMOs, but perhaps not in the way that you think they are.
Successful mmos tend to be led by one or two people with firm vision of what they want and the will to exercise that creative control and direction over the rest of the team. This tends to keep things feeling coherent and focused. Pretty much all the genre leading MMOs are great examples of this, Vanilla WoW, 2.0 ARR, even Everquest maintained a very coherent feel throughout it's earlier tiers of content despite the underlying technology evolving so rapidly.
MMO's tend to start to falter and fall into their twilight years as these people pulling the strings in the background either lose interest or simply get moved onto new projects. This is usually accompanied by rapidly shrinking art and development budgets causing the game to both drift away from the original artistic intent (aka those neon dyes in UO) as well as massively dropping in terms of art consistency and quality (Later expansions in some MMOs often look like college grade art projects compared to earlier content. Everquest was a massive offender for this).
As far as the PKing thing goes, having both factions and the fear of death and loss to rivals scratches that little tribalism itch that is an old part of human nature.



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