Now that I've calmed down and less pissed off let me explain my case a little more clearly.
1) First off this is just going to get people to quit mid quest:
TTF was super spamable before. Times are different, you can't get groups going nearly as easily. With this penalty in effect, you can expect far more dcers. Think you'll do ultimate mode valz? Ha!
2) This isn't going to make people better:
PSO is an old game and desynces happen fairly frequently. You can be a pro, and still get screwed up by desynces. The only thing this new system will do is encourage new players just to stick with one player mode so other people don't screw them up.
3) Even small decreases and capped exp loss adds up:
When we're talking about grinding to 200, a little exp can quickly add up.
4) If you want to do this, make a vanilla option:
So let's run a little experiment. Tie the exp loss to your increased luck system. So if people want that daily luck bonus they'll have to risk the death penalty. If they don't take any increased luck, they don't risk exp penalty. Seems fair right?
I'm actually willing to bet more users will take the vanilla option even if you offered 110% luck. Why? Because no one wants to work harder on an already daunting task.