One of the most unique thing about HnH always was the harsh permanent death system. Its been a while since it isnt anymore, and with that, characters and mostly fighters are getting way too much OP, and new players cant even think of PvP cause it would mean instadeath(or not, cause there are no more deaths)(but basically 1hit and you're out). The hearthing after you get knocked out thing is good, but i think we all agree isnt the best solution. I just thought of something that might also not be the best solution, but i think its way better than the current system, and would be pretty easy to implement.
Basically my idea is: you have X lifes, just an arbitrary number that is the same for everyone (maybe +1 for verified accs?), which is the number of times you can get KO'ed and then TP back to your HF (only counts if you get ko'ed by a player). Each time you get koed you lose a life, and when you have 0 lifes, the combat doesnt stop when you're ko'ed and you can die for real. I dont even remember getting ko'ed in my crafter/explorer, but it surely does happen with some people, but really not that much, so if you have like, 5 lifes, your character will live long enough and you probably wont care if it dies cause you can get a new one quickly. But for fighters, that get ko'ed daily (i really dont know the frequency) or every time there is a fight, there would be a huge difference, and people would start dying again.
Other system i thought but this one i dont like it a lot and i think most people also wont, but it would be making 2 types of characters: fighters and non fighters. Non fighters cant start a fight (maybe cant fight back at all)(PvP only), but also cant die(only on the same ways as now), and fighters can die as always.