We have all had our fair share of games that dont have penalties for being pk'd/killed.. If Vangaurd doesnt offer any type of reward or loot, it'll just fall into the worthless PVP category with WoW
I am going to give a shot but there are things about it that I dont like already:
1) You have to be with in 10 level's to kill somone.
2) There is no death penality.
3) No full item loot.
I don't think any game will have full loot even Ulitma got away from that with the blessing of items. I have been asking the dev's of shadowbane to make the test server full loot (to no avail).