Ahh, good old DR vigilante justice. I've a couple stories myself, but I lack the patience to tell you all about them.
That is one thing I liked a lot about Dragonrealms though, a ranger can start the game with nothing, pick up someone's trash longbow they carved, and pick up a longsword or broadsword in reavers, as well as some decent leather armor, and go off and hunt. They would be viable, and could use this equipment for many, many circles to come. Didn't spend a copper of their starting money either. Might as well just use it to pay off that debt or buy a handful of arrows and a quiver.
Anyway, MMORPGs have really shunned this concept, and I disagree with it. Skill trumps gear, always. What good is this glowy spikey huge sword if you don't know how to swing it? I think we should take the emphasis off levels, and put it into how much you actually train your character to do a certain task.
So perhaps one day we can stray away from this whole.. hey he's level 3, must be a noob -- way of thinking.
I'm sure lots of folks would want to limit their level just to trick folks into accepting a duel. Of course, botting and macroing could become a problem, but only if HJ isn't intuitively designed to the point where that sort of activity is just impossible.
For example, a complicated battle system like the one in DR would be great. Balance, fatigue, and combat advantage should be considered. Something too complicated for a bot to figure out, as well as a way of breaking away from the autoattack feature that was boring and drawn out when it was introduced in the dark ages of MMORPGs. (Ultima Online? Was that the first? anyway...)
Of course, Age of Conan is doing just that, but I know Simu has the tools to make even that complex combat system look rudimentary.
All in all though, I agree with this concept of "rare" loots being nice, but not necessary at all. I'm sure some folks would much more appreciate for once in their gaming careers *not* having to brandish a fiendish yet unwieldy looking hunk of metal, in favor of RP, as well as fairness to the folks who prefer to play alone or with one or two trusted individuals.
Let's face it, in popular games like WoW, you can't compete with the general population unless you're in, or have been in, a good guild that raids a lot. That's why I don't play WoW, forcing me to play with other folks I don't know or like isn't fun, it's frustrating. Give a player the choice to not play with folks they'd rather not play with, and I'll bet they keep payin those monthly fees.