Should Open World PvP be level restricted - to a degree?

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If the risk outweighs the reward so greatly that there's no point in even taking said risk - you have a bad "risk vs reward" system.

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Except I'm 99% sure that there won't be any "red guilds" in the game if the corruption is tuned to deter people from PKing as much as some people want. If even a solo player is afraid to PK someone then how can a guild support itself if their members are constantly hunted, are constantly at shitty pvp stats, and are somewhere at lvl20 pve power after they've removed their corruption? Oh, and their PK counts are through the roof so even a single kill will get them right back to that super low power lvl.

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I think we have different definitions of "a red guild". To me it means a guild whose players PK pretty much 99% of anyone they see, like this.
https://www.youtube.com/watch?v=YoqInYTpzsU

Otherwise, I'm not sure what exactly you're disagreeing with in that quote.

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Again though, I don't really see how a guild full of red players can survive for anything longer than a day or two (if that). Any character that has gear better than utter trash would become a juicy piñata for any other player. A "red guild" suggests that its members have good enough gear to PK anyone, or they're running around in PKing groups, at which point it's bordering on griefing.

If a guild is known for being red and known for operating in a certain node - pretty much any guild even remotely close to their location will constantly be on the hunt for those red players. They'll have a single BH to know the location of the reds, but they'll be attacking with their greens, so that it's way easier to kill the reds. And then those red guilds will just lose a shitton of time and money on trying to get back to their full powerlvl. And with each PK they'll just keep making it worse for themselves.

Also, seas won't have corruption, so if some group of people want to protect an island (I'd assume it's gonna have something valuable to protect?) - they can just attack any nearing ship, instead of risking corruption for no reason.

This is why I'm saying that I'm sure there's gonna be no red guilds, especially if the corruption is tuned harshly enough to deter corruption to the point you're describing. The risk is too assured and too great to attempt it.

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But if you only have one char that goes on PKing sprees - you wouldn't care that his exploits influence your "good" char. There'd be no crossover. But those who like to PK overall, will definitely try having a character that PKs everyone they see, while their main may only PK when it truly needs it. But if that need outweigh the "fun" of ruining others' gameplay - that player would PK less, which is the point of the corruption system.

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Quite a fair bit of people advocated for guild membership being account-wide. We also don't know whether citizenship and freeholds will be account-wide or not, and I'd imagine people would prefer not to pay x8 (or more) taxes on their freehold, nor would they want to buy that many freeholds in the first place.

Intrepid could just say "your account is your family, so your in-game reputation spills over to other chars".