Death Penalties

I think EXP loss upon death should be a "League Specific" thing... a noob league that tends to get killed quite often but is just trying to get used to this game style doesn't NEED Permanent EXP loss... I think that you should slowly integrate new players so they can play where they feel comfortable with their level of skill/ or for older people (my mom is almost 60 but she LOVED DIABLO II) their physical Dexterity may prevent them from enjoying a full out battle that they simply can't keep up with.

Or maybe make like you say "noob league" in which they will be until level 30 (just suggesting level) and then they would be transfered to normal league?

Would they be FORCED to start in the NOOB LEAGUE? Or is the NOOB league entirely optional with level cap 30?

Optional in my opinion of course.

Thank you... I don't want to get forced to do anything I don't want to.

Couple of thoughts on how to approach death penalties and different leagues.
For the easier leagues, death = exp penalty. However, the amount of exp lost is dependent upon level, and is an increasing % based on level. I.e. lower levels = exp loss < exp required to gain that level. If you keep dying, it takes longer to get exp to progress to next level (for say levels up to 10 or 15). As you get into higher levels, exp loss can be > exp required for that level, and you may get pushed down 1, 2, 3 or more levels. Result is that in higher levels, you may lose use of level dependent weapons/armour, until exp is regained. So, not permanent loss of gear, more temporary inability to use (at this point open up a whole discussion around whether skills are lost & have to be regained).
For harder leagues, set max no. of deaths, say 5 or 3, with no other penalty. Hardest league = 1 life.
With fixed number of death leagues, once that max is reached, the player keeps the character, and it gets pushed down to next lowest league. Also, for a twist, that char remains in that league (not playable), and effectively becomes a monster run by the AI engine. I.e. gear is not simply dropped and lying around for the taking, but it can be won by other players defeating that 'monster', akin to a PVP, although it is realy PvE.
These ideas probably need more thought, but it's a way to keep things fair/balanced, and gives the players choice, which has been a critical part of most comments/threads.

NO LEVEL LOSS... Games with this idea in mind absolutely frustrate the crap out of a lot of players because if they enter an area and get slaughtered, what is going to happen EVERY TIME THEY GO THERE?

ANSWER: They will get slaughtered.

Question 2: What if they are in a group?

Answer: Monsters strength is usually relative to party size in games like this, earlier player will get slaughtered.

Question 3: Why does the idea of losing levels suck if for no other reason?

Answer: I DON'T WANT TO LEVEL GRIND FOR 5 LEVELS IN ONE AREA, FOR EACH AREA I COME TO JUST IN CASE THERE IS SOMETHING THAT COULD KILL ME AND "EAT MY F*CKING LEVELS"...

Cheers cybrim - you expecting to always die in certain areas? By logical extention, you're going to reach a point where you aren't going to progress. At that point, might as well start a new char or find another game. (Edit, this does occur with poor skill selection where you find you've got a neutered char after a truck load of grinding)

Still, I'm with you on the grinding front. I admit I hate grinding away only to come up with didly squat at the end of it.

Just trying to suggest an approach that meets Dev's stated aim to make it hard and is less worse than loss of gear/gems etc, or the annoying get thrown back to town in generic char and you have to get back to a tombstone (through whatever killed you in the first place) to get your goodies back again. THAT can be f'ing frustrating because you might as well say goodbye to gear, due to;
a) if you can't defeat mobs in the gear you had, what f'ing chance have you got in generic char
b) random nature of gear drops means limited ability to re-acquire that hard earned gear through trading or slaying

You die and instead of losing xp the required amount increases by 5%ish of the original xp cost for the current level your working towards.
SO:

LV1->LV2=100xp, you die, 105xp, you die again it is now 110xp, you die again and it is 115xp, by this time you should level up.

SO: LV2->LV3= LV1-2XP modified from death (this will be involved for each time you die)=115xp+ LV2-LV3(300?)= LV3 requirement of 415xp (as total XP) because you DIED 3 F*cking times in the first to second level... you apparently are a NOOB, so you should probably try a NOOB League (which should reset your xp penalty). If anything you gain from your failures but you also have to make up for them.

LV3 with 3 First level deaths is achieved at 415, but if you die once at level 2, 415 + 15xp= 430.

I hope this makes it into the game, it seems logical to me, it prevents the STUPID BUILD UP for NOTHING, Titan Quest got VERY Frustrating at times because everything leveled up with you and you didn't get xp from creatures 6 levels lower than you.

I think you should gain at least .01xp/kill for "improving your swing" (golf joke).

This way the penalty is NOWHERE NEAR AS FRUSTRATING FOR THE PLAYER AS LOSING OFTEN HARD EARNED EXPERIENCE...

Interesting thought - but does that compress the xp required for subsequent levls?
Advancing levels is typically a fixed table, based on expontentially growing xp required to level up, and monsters provide more xp the higher the char level.
So, l1 -> l2 at 100xp, you die, and it pushes that threshold up by a % to say 105xp. Die again and same % is applied. Does that mean it reduces the xp required to go l2 -> l3, assuming xp table is fixed?