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There's no way to give a specific perfect description of just how much the game is supposed to deter going Red.
But as of TODAY'S Dev Stream, I'm much more inclined toward believing that VERY few people will go Red in this game, and I also believe that this doesn't really reduce owPvP.
In fact, I am constantly 'surprised' by the number of people who think that owPvP has much to do with going Red at all. Red is just 'a last resort for when your opponent refuses to take your challenge seriously', in my mind.
I am ENTIRELY willing to go Red to achieve a goal, but I HOPE for a game where my opponent, realizing that PvP is a valid way to solve their problem, decides 'Let's just fight and the winner takes the Thing'. The 'willingness to go Red' is not for 'standard situations' for most people, I think.
The game doesn't want you to go Red, it wants you to have the option of solving your problems through violence if all else fails and you feel you can get away with it. And if no one blames you for going Red against X target, your chances of getting away with it are way higher.
But at the same time, you have taken a risk. You CAN still suffer for doing it.