Nothing wrong with full loot if his server is under these conditions:
Item droprates are very high.
The vendor bought items for people who die are good enough for you to win a fight with against ALL other classes, but not as strong as the best/quested gear.
It might also be a good idea to consolidate your game world. The PVP server VZ/TZ is probably the highest pop. server in eqemu, so getting even just 20-30 active users will be an accomplishment for a new one despite whatever promises it pulls off. If you keep the gameworld smaller you will encourage community in the gameworld as well as PVP. Roleplaying is top priority for you, but IDK if you think the one or two players of each race want to be spread 20 zones away from eachother roleplaying in tells =p
Just keep a measure of realism when putting this great idea into effect, possibly have ogres/trolls/de's all start in neriak. Have Barbarians start in Freeport with humans. Something like that, well its your idea you have a vision of the server you want just keep in mind the reality is much more difficult to pull off and attracting players and retaining is the toughest part of all.
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