I have avoided this thread from the beginning because I was trying to think of a single reason to support this. And I can't. So I have to ask the questions...
1. Why is the xp death penalty being changed from the current system? Did people complain about it? Do the devs feel it is not enough of a deterrent to death? Too much deterrent? Please explain the logic as to what was wrong with the way it is.
2. Why do we need "bound" items? Were there substantial situations where valuable loot degraded to be unusable? Even if you do move forward with item decay on death as part of the penalty, why should people be able to circumvent this with "binding"? Heck I think there already is item damage on death. When I run a flawless quest and rarely get hit, I don't have to repair. When I die or get a few fireballs, flamestrikes whatever hit me, I do have to repair items. So - it currently works this way. Why change?