Agree, I'd suggest allow the stealing of inventory + maybe one to two pieces of equipment and curio each, selected randomly from the character upon KO. Full loot if they have used rage to initiate combat or commited serious crimes within the past 7 days.
PVP advocates really have no argument, as shown in the previous 4 pages. PVP in Haven & Hearth exists as a way to facilitate dispute resolution, prevent griefing, and exert power, as per
the developers' own manifesto. You can do all that without fucking over a peaceful character's progress.
I'd like to quote a relevant phrase by the own devs on PVP from that thread:
New players, I would also like to add, should be, and are, particularly easy to target. The amount of investment needed to create one is so small that affording them any means of special security is inviting for them to be used as grief-machines and if they die, not much has been lost.
By this same logic, someone's hard earned equipment and study report a couple of days -or weeks- down the line, is a significant investment in relative terms. It may be the only equipment set they own. They might be waiting for thousands of LP's worth of curios. They might not have the means to heal all their wounds quickly. They will spend hours remaking their sets and healing, and lose many hours or even days of LP progress, whereas the ganker in most cases didn't take over 5 minutes to get them knocked out and stripped down. Thus, they should be deserving of some protection.
Full loot on KO only serves to punish them further with no real ulterior purpose. However, the idea is to protect the non PVP oriented characters, hermits and overall nubs. This is why I would limit this loot protection to characters that haven't initiated combat through Rage or commited serious crimes during the last 7 days.