Just spent 30 mins typing this out, and my browser crashed. >< Carpal tunnel and all, this might be a touch brusk as a result.
Death/Life
The grievous damage is currently considered laughable by most warriors I talk to. It has been used occasionally, but it's agreed that it gives relatively no benefit for the cost of having 66.6% as much life as a full life char.
Lets make archery useful: viewtopic.php?f=2&t=31833&start=10#p416956
Xcom highlights why archers are in general not terribly effective right now. Their only use is against towns you vastly outgear. One suggestion made was that archery could be given bonus damage against armour and effectively be an armour breaker.
I wouldn't necessarily want to see bonus hitpoint damage for them though as archery is a much more simplistic form of combat and buffing to a primary combat role would probably take away combat complexity. That however is a somewhat uninformed opinion as I am not a combat type.
Martial/Peaceful & Tradition/Change - The issues
The problem with the change slider is that basically everyone needs it. The only roles that can get away with pushing tradition are miners and warriors by and large.
So what we're having here is that the characters who should be risking the most in PvP have the option to risk the least. And the carebear characters on the other hand stand to lose the most in combat. Now I agree that not every carebear character is controlled by a peaceful player, but the point stands that all peaceful players will be using carebear characters.
In general, we want carebears around. They give the game life and depth, they give warriors things to raid, they populate trade threads, you name it. The point is, why do they have to risk the most right now? Shouldn't warriors, the ones getting thrill from combat, be the ones with the bigger anti on the table? Less impact of death on carebears = more of them willing to start over after death. This in turn means more targets to raid as the gameworld ages since less have been forced out of the game.
What could be done to address the issues
I propose that all death penalties be moved into the Martial/Peaceful slider. Peaceful having the least loss on death, martial the most. To compensate, characters with full martial could have a % bonus to UA, MC and MM as well as the 20% damage bonus.
The idea being that warriors to be effective would really want to push the martial slider, but this would also increase their risk in combat. And due to the ancestor system, moving the death penalty away from trad/change does not render that slider useless.
Edit: Pushing towards martial would have to increase the tradition slider instead of change or swapping in/out would be too quick.
Lets discuss.