Did you read their website? I dont think you have the correct impression of the game from me.
But I think I can answer a few of your questions. As for open pvp there is an alignment system of sorts...i.e. you pk ppl in town and of lower rank npc guards will attack you on sight. Also there will be racial capitals which will still be open pvp but will have alot of guards.
Mounted combat i cannot explain havent really read about it.
From what I understand players will have complete control of ships...i.e. steering and attacking, ships will be capable of being mounted with Ballistae and Catapaults.
Cites are built, no bought. You actually have to build/place the buildings...(not sure on how this works as far as resources go)
I was not thrilled about full loot at first but then i came to like the idea. For example you wont spend hour after hour doing the same instance(WoW) to get the one superweapon you want. Superweapons will not exist in Darkfall. Everything you can find from mobs will be creatable by crafters. This as they are planning will make people rely more on skill in combat than a superweapon, which I believe is good.
Also, full loot will hopefully make greifers think twice since they know they could lose everything on their character if they fail.
Also toons dont "level" in the traditional sense. You gain abilities by actually using skills, not killing XXXXX number of mobs.
As far as the server capabilities I have no idea how that is going to work.
Perhaps it is just a difference of opinion but I like the idea of a player controlled legal system...look at human history...there were evil empires/emperors, with bad systems that punished people...there were also benevolent ones...
Anyway I think it will be good...at least check out the site itll be worth it.