I think there should be one keep inventory arena and one arena where keep inventory is turned off. It would allow players to choose what they wanted to coincide with what level they feel there at in terms of pvp skills.
I personally think for most offences this is not a good idea. What happens on the server should stay on the server and hopefully players will realize their mistake if they get punished in game and won't repeat it on here. However in terms of things like permanent bans from the server I do feel...