Personally I'm against losing gear for fleeing, mostly because it's not like as you run away your pants just fall off and are EATEN by the enemy or something.
That would be the funniest solution however.
Then your gear gets teleported to the lost and found and you have to get there butt naked and buy your gear back at an inflated cost of +500% but your money is also in the lost and found so you can't buy it back, damn!
If you are an undead everyone would attack you in town!
That's what you get for fleeing!
