Funcom said they would unveil news about their PvP system today and boy did they ever. Age of Conan is getting a very exciting fugitive system where players who are PKs will become progressively more "red" as they do dishonorable deeds. The exciting part is the item looting possibility. Eventually when you hit a certain point death penalties are instituted and items will start to drop off you in PVP.
Here is the official low down on their proposed evolution for the game and it's full of exciting stuff. The fugitive system is just one of many updates coming soon; another addition which should be here by fall is PvP gear and levels.
The possibility that has me most hyped up is that perhaps they will create an all fugitive server. Default every players status to red and suddenly the game is very much like previous great MMOs AC and Ultima Online with player looting enabled. AOC may become the type of really amazing MMO where guilds go head to head to control resources and both sides have no choice but to drop their gear when they die. I called AOC carebear before, but this is a huge step in the right direction. If they do it right they could have the best MMO in a long long time.