Okay. Let's face the facts. In every single game EVER devoloped, there has been a consequence towards dying or failing a certain aspect of the game. In Super Mario if you were squashed, stomped, chewed, eaten, flamed, or bombed, you either started from the start of the level, or at the checkpoint half-way. In Call Of Duty if you died, you had a delay timer from being respawn and also lost your killstreak. In Batman: Arkham Asylum if Batman got the **** beat out of him, Joker would come out and say, "Haha!" in your face and you'd be forced to try again. On Ace Combat (or whatever I'm thinking of) if your airplane was shot down, you'd be forced to buy another plane in order to replace the one you blew up.
Basically what I'm saying is that in a world of MMO where a lot of you time is based on leveling, it would seem perfectly feasable that XP be lost per death. There must be a consequence for you being irrational and dying stupidly. I've seen so many people go out in Behest and just get ravaged by a group of enemies and then come back to take another 2-3 deaths and lay there while they still gain XP dead. A weakness is good for a consequence, but it needs something more as an incentive to stop people from acting like Baboons when it comes to fighting. It will implore no strategy in the long run. Just keep attacking until you die and still you'll gain XP for it.
I try to get people to see the other end of the spectrum, but you choose to ignore it and rebutal with nothing. It's just along the lines of people's complaints with Call of Duty: Black Ops. If you get shot in the chest or face, there's no way in hell you're getting back up. Make some consequences worth remembrance and bring back a challenge.
P.S. Play on the hardest difficulty on any game. Guaran-damn-tee you that most of the time you get your ass whooped, have limited saves, and you deal less damage to the AI. That's a challenge. Where's FFXIV's?