A. My favorite system is equipment durability loss and xp loss
b. Least favorite is absolutely no penalties what so ever
c. What Id like to see is xp loss and equipment durability loss with a hybrid corpse mechanic where you keep your equipped items but drop everything in your inventory, and your corpse will become lootable by other players after a set duration (maybe 10 minutes)
The reason behind only dropping your inventory is, if I died in that spot with my best equipment on, how the hell am I suppose to get my corpse back while naked or in crappy back up gear?
The reason behind your corpse being lootable after a set time is 3 fold.
1. Say your in a remote area with a party of friends that cant be reached alone and you die, your surviving team members could then hang around your corpse for the 10 minutes, then collect your loot for you and bring it back to you.
2. If you have found some good drops and end up dieing it adds a sense of urgency in getting back to your corpse before someone else loots those valuable items
3. It could add a new “treasure hunter” and “bounty hunter” type dynamic to the game. Players could be treasure hunters who roam around harder zones just looking for corpses to loot for items. Alternatively lower lvl players could offer a bounty to higher lvl players to obtain their corpse for them…. or even simply ask for the help of a kind higher lvl player who might be able to mentor the newer player in other aspects of the game