Being that FFXIV wasn't designed for permadeath, this server would basically be a server only for some alternate characters. People would have their main character on a regular server, and just just mess around on the permadeath server from time to time, play for thrills and the emotional roller coaster ride, and for bragging rights for some players who survive long enough.

There may be a few tight knit cliques because it would be the only way to survive for long. But overall the "community" would probably be non-existent as no one would want to take a chance on playing with or helping strangers for fear of that stranger messing up and wiping out your work permanently.

If SE implemented this, they should require users of this server to help make sure it's financially viable for the server upkeep and any development required to make it work. Perhaps an additional $500 ~ $1000 per month for use of the permadeath server depending on number of users?