This was originally part of another thread; however, the posts that I was reacting to disappeard and it no longer made any sense there. So here goes:
I think there is a balance problem with the raiding mechanic within the game. I find the death penalty and other losses too extreme for an open ended sandbox game with crime and murder.
If the intention of the game is to support and encourage raiding, murder, and pillaging, then the cost to the target of said destruction needs to be low enough that a player can shrug off the setback and go off and rebuild (else there will never be anything worth raiding). For many of us players, the joy of carving a new life out of the wilderness and developing a character is what attracts us to the game. If a raid can set us back 6 or 8 months of game time as the seeds, trees and livestock we bred are destroyed, maps and equipment are gone, and most of our skills are lost, why would we want to redo the same actions for another 6 or 8 months just to get back to where we are (with the expectation of yet another raid on the horizon); I can understand why some murdered players don't come back again for another go.
I really think the basic crafting/hunting/farming/resource-hunting game is fun. It fits very well with my interest in character development. However, I find myself wondering if it is worth my time to develop high quality trees or cattle or even crops when I have to constantly worry that someone may raid my farm and destroy it all just for the fun of it.
I realize that the villagers in Northern Europe were under the same threat all the time and in some way the game is a reflection of how life was, but there is one thing to keep in mind. Those villagers probably didn't enjoy the threat under which they lived any more than we do in-game; however, for them it was the only game in town.