The "death penalty" is a big problem. Not sure why that is, cause some NPCs only tell you not to steal (I think).

In my first run I picked up some letter cause it sounded like a quest item, and he just killed me on the spot. I think all NPCs should be a lot more forgiving for the first crimes. It can really bum you out - I usually don't save a lot while in the city, cause it's supposed to be "safe".