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The position on pvp was set a long time ago. The punishments for PKing are more severe than in L2, but otherwise it's pretty much a copy of that system. Dunno where you got that "pressed by his colleagues" thing, considering that Margaret quite often comments about her hardcore pvping escapades back in the day.
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Steven said, that "for fun" part will be bannable, because you'd be repeatedly killing people for no reason.
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And the point of this system is to limit that "something". And if the limit is good enough, the amount of complaints will be small enough for live GMs to go through and evaluate the legitimacy of those claims. If the logs show that a PKer killed the complaining player in several spots several times within a short period of time - that's probably gonna be a warning or a small ban. If that PKer killed that player in one location several times and the PKer is still in that location - I'd imagine it won't lead to a ban, because that's defense of a location and the victim knew what they were doing by going to that location again and again.
That's the risk/reward thing Steven was "mumbling about on and on". The PKer knew the risks of killing another player (the huge penalties for doing so) and the victim then knew the risks of returning to a player that's willing to kill them (repeated green death penalties). The only thing that'll be changed through testing is the minute details of corruption gain values and death penalty values.