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The penalty comes only if you die while red. BHs can look for you, but unless they were close to you or you were too far from any valuable mobs - they'll be probably too late to get you before you clear your corruption through XP gain. So there's a much higher chance that a random green that think he's strong enough will try killing you.
In the current system you're disadvantaged against him because you'll get more corruption. So you either have to run away or have your friends heal you while you kill mobs with that green attacking you constantly. In case of running away you give the BHs more time to try and catch you, which justifies that system (I've got my own problems with it). In the case of you being with a group of people, there's a high chance that the green attacker also has a group of people with them, at which point you're dead either way because you'll just get attacked by 8 people all at once, no matter if they flag up against you or not. Imo this is what makes the whole system work as intended and even makes the BH system work on top of that.
In your suggestion, if you're alone and the green is alone, you can just fight back w/o any problems and immediately keep farming the mobs. You do not get more corruption so the time to remove your present corruption is really short. This invalidates the BH system and doesn't punish the red in any way. And again, if you're attacked by a group of greens there'd be no difference between the 2 systems. To me this system doesn't work because it doesn't deter people from going red, because they know they can just keep killing mobs w/o ever gaining more corruption in the process. And, in turn, that would invalidate the BH system because in order for any BH to catch you in time, they'd have to be very close to your initial murder location.
Now both of those example operate under the assumption that killing mobs will be at all valid as a way to remove corruption. We don't have the details about that part of the balancing of this system, and we won't know anything concrete until after extensive testing of it. If after the testing the balancing comes down to "dying is the only valid way to remove corruption, because killing mobs would require you to avoid people for an hour, after just one kill" - I wouldn't really care how the greens interact with the red because the end result will always be "red dies". While the balancing I'd personally want would be smth like "30% of the time the red becomes green through XP gain and 70% it's death at the hands of BHs because the red was on the run from the greens and they lost him".
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If you can't outrun some greens it's either a skill issue or decision making one. If you PKed a green in a crowd of people - you deserve to die. If you killed a green somewhere in a dungeon and couldn't remove your corruption before any new greens come for you (or didn't relocate in time) - it's a skill issue and you still deserve to die.
Otherwise, I've explained my position on what I want from the system already.