Part of the problem, as I see it, is that killing defenceless civilians and non-aggressive NPCs has no real consequence and pays too well. The magisters don't act as a police force (arresting you and taking your gear & cash away, or beating seven shades of fewmets out of you if you attack one of their own reducing constitution and number of hands, and then taking your gear & cash away). Loss of reputation does not seem to have any great effect either.
It might help if the tarriff for run of the mill NPCs were reduced to say 5XP, with 10XP for a really tough one. That way the reward for beating a high level, well-equipped enemy compared to a child reflects the amount you learn from each encounter.
Also, if unprovoked kills each affect your reputation with the result that over time you become increasingly hated, resulting in higher prices to buy and lower prices when you sell gear, this provides a non-XP penalty which could make the game increasingly difficult.
NPC's might also be made tougher with no increase in XP for killing them because they have started buying personal armour (valueless to others) or attending kung po classes (kung fu for chickens).
The idea is to level the playing field for different approaches to the game, not to force one style of play on everyone.
