You start out in a safe territory controlled and patrolled by an NPC government. Rewards are low but it is a safe place for newcomers to learn and develop for a while.
The free area is not only more lucrative as far as what you can find there but it is where many of the more fun game elements are (territory, wars, death, glory etc..). If a player wants to experience any of this, he has to leave the safety of the NPC areas.
So far I haven't seen another solution does a better job of making PVPers happy and preventing newbies from rage quitting their first day of play. The only people who loose are the high levels who like to grief newbies and really, such players need to grow a pair and pick fights on their own level anyways.
