First of all, keep in mind that people do drop for legitimate reasons too. My girlfriend had a problem with GW crashing pretty frequently a few months ago, and a penalty on top of that probably would have driven her away from the game for good.
I do think SOMETHING needs to be done, though. As for being able to kick afk players, I think that could be handled automatically. After, say, 2 minutes with no input from that player, they get kicked. For players who drop, I think there are too many idiots out there that aren't going to CARE about their K or L faction at all. Can't do it on gold either, PvP chars don't have any gold, and who's to say any of their characters do. I think some sort of time penalty is best. Dropping mid-match should just disconnect you from GW and ban you for a very short 5 minutes or so. This would keep people with legitimate problems (having to call the ISP or reboot their computer) from getting annoyed.
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