Hey.
EDIT: Reading many of your comments, i only hear "I want teh loot" in many arguments. However, no matter how you twist it, consequences for murdering someone are meaningless if not totally absent for most players. People make too much gold from murdering and the boubty that careless murders give, are not high enough to make people act more cautiously. Most players can just go about murdering NPC's left and right with getting enough stuff for fences to totally negate the meaning of any bounty they get in the process. Easy loot, money from nothing.. These are what pickpocketing and murdering create. Money from nothing tends to ruin the whole economy of MMO. Furthermore, while many players do not consider NPC's as more than walking containers, this does not mean the walking container should give good loot for murder, murder is easy, blade of woe someone and you get loot easy mode. At least when you pickpocket, there are skill involved in the process and the pickpocket should be the means to get good loot, killing an NPC should give crap.
Furthermore, for many players who are more to playing as character rather than person who just plays for teh stuff. For those of us who do immerse ourselves in to world of Tamriel as characters existing in that world, the massacre of NPC folks is not very immersive as the amount of murder happening is totally out of control. I do like toi play psychotic characters when im angry about something, it is a good way to release some pressure, but i dont think murder as a playstyle should be a playstyle to reserve loot, it should rather be a playstyle to be a murderer, plain and simple. Murder motives are rarely for wealth anyways. Reserve loot for pickpockets who invest skillpoints and personal skill in executing pickpocket correctly and leave murdering for murdering pyschopath, thanks

I think we could get a bit of a change here.. Right now you can actually get pretty good loot at times when you murder an NPC and loot.
I think the more skilled playstyle, pickpocketing should be rewarded better than murder. I think the loot in murder victims should be reduced in quality and worth of what it is now and in turn, second and third pickpocket of same NPC should reward way better than now. Also the "harder" pickpocket marks should reward a bit better by giving more valuable loot.
Personally, i dont think that easy mode/murder should be encouraged. Rather the more skill and planning required pickpocket should be always encouraged as the better option.
People also claim, that if they pickpocket an NPC, the NPC is empty for next player that attempts to pickpoicket. I find this hard to believe as when i pickpocket folks on my own, i never come across an empty NPC, i have even pickpocketed an NPC that was just pickpocketed by my friend and both of us received 3 pickpockets from the target. However.. IF NPC is empty after someone pickpockets it, the system needs to change so that the NPC is not empty for next player. Also, NPC pockets that are emptied, need to reset in same time as it takes for respawn after murtder.
Thing here is, that murder is happening in casual rate as a means to receive loot, not as means to roleplay a murdering character. This needs to change so that item aquisition always happens through pickpocketing and murder is simply a way to roleplay, not as measn to receive good loot. The murdered NPC can have few coins as loot for immersive reasons