Sounds fine to me :
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1- You don't make significant changes so late in beta. This belongs to the very beginning of the design phase.
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I'm not sure if this is even worth repeating again, if this hasn't sunk in yet; Vanguard is not being beta tested as normal MMOs are these days. The game is undergoing significant changes based on feedback from testers; although that's not to say that they haven't had something like this planned for a while now. I don't think changing the death mechanics are that big of a deal at any stage in Beta, especially considering games like EQ2 did it while the game was released.
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2- My opinion is that "Risk Vs Reward" has never been a really fun mechanic to use because it encourage players to aim lower instead of higher (the game punishes experimentation).
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The game rewards experimentation, but equivalently deals a harsher penalty upon failure. The stakes are higher, you aren't just being punished. If you are willing to risk more, the possiblity of a bigger reward is in store for you.
I would think people who aim to be the best are going to go for the best rewards.
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3- Linked to the previous point. The players will tend to "game" the system. Instead of supporting different playstyles most of the "harder" content will be simply ignored and people will just grind their way up (to boredom). Challenge not imposed isn't a challenge.
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If it takes 2x as long to level on easier mobs, than it does on more difficult mobs, as well as the harder mobs dropping better loot, I think it would be worth the risk to try more challenging content; plus fighting easy/predictable mobs isn't exactly fun.
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When was beta3 scheduled for, again?
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Early August, I believe... or "sometime soon" which could be anywhere from now 'til next year.
