This topic is opinion at best, as the game was made to change to the tastes of the player/builder. If you prefer a game where there is, or is not a penalty, then you can find one on line now. If you prefer a Solo-play game, instead of online play, then that is also available, in at last count 1000s of choices. It does not mater at all what the death penalty is, or isn't in a current PW, or what anyone here thinks it should be, as it is up to the host of that PW as to what is good for players and what will attract new players. Most hosts do not care what is going on here, as they tend to stay on their own PW forums. Even after all of that, if you still have not found what is to your taste, you can build your own. While that is my opinion, I humbly submit, where are the hosts of the PWs your talking about here? They are obviously not chiming in about it. Its all well and good to post your own thoughts on what constitutes an acceptable death penalty, and what PWs have the best, most popular, or what not, but seriously, the bast presumption that PWs want to attract new players, that they should change the core of the game that they host, to suit those new players, is at best, arrogance. At worst it will only cause admin type problems.
To reinforce my take on this, I ask you Genisys, as it is your statements that have spawned this, if you were hosting one of your mods now, and 20 hardcore RP gamers logged in and stated you should switch to Perm death, and low end magic items, +2 or less, would you change the mod to suit the players? would it mater if you only had 2 other players who did not want it to change? What if you had 20 that did not want it to change?
The fact of the mater is NWN, will never ever have the numbers it once did. Most players who are still playing online, have found their home, very few will switch. Those that do switch, will probably leave only after some type of admin infused problems, aka, changing the core game to suit one type of player taste.