Please remember this is only an idea therefore flaming is not needed.
Since the Dev's appear to have created this game from their spare time and for their enjoyment for the moment, and for the most part have enjoyed the free forming evolution of community interaction trying to change only that which is completely unbalanced, I have one maybe two possible idea's to balance this particular pk/griefer issue to the benefit of all. If this has already been suggested on another thread at another time forgive me.
To get rid of the combat system and being able to fight or vandalize for whatever reasons would be wrong. To modify it might not be.
First:
For every action there should be a consequence, therefore, if someone would like to kill another player (and this should be if a person initiates killing without cause) (people who pursue pk'ers might have cause?) then whomever initiates the killing without cause should lose something that is of value. One way would be the same as if you die you lose up to 75% of your LP, if you kill without cause maybe the same can be implemented, you lose a certain amount of LP (maybe not 75%, but something......and it becomes harder to regain lost LP each time you kill without cause). This would apply to griefer's as well. If you make it cost something to pk or grief then one would think twice if it is worth it to perform the action, but would not completely eliminate it. This would also reduce the worthless and random destruction of property stolen and discouragement of noob players as well.
Second:
To prevent macro's, power LP players, and simply unbalance in strength issue's regarding pk'ers/griefers and the protections they may have against less aggressive LP farmers or players, maybe allowing (as in real life) the ability of groups of people to be able to overpower or have a chance against one powerful player and be able to more effectively repel or kill said aggressor. (a group of 5 with pitchforks should be able to trap and harm if not kill an iron armored war monger....this would also foster community development)
If players are truly into combat, then the above mentioned corrections would not apply. Such as in the game of Ultima Online a guild system can be created where by nobody would be penalized for fighting or griefing and would be able to truly test their skills.
Even if something like this was not addressed it is still a great game.
Thanks Jorb and Loftar.....or, Loftar and Jorb