Okay, so the whole respawning part of player killing is kinda what breaks it into a huge mess. Respawning exactly where you were when you died just kinda sucks for the killer because A the kill-ee usually retaliates from full health vs the killer's damaged health and B if you kill someone because they are in the way it solves nothing.

I propose that dying in the overworld sends you to a central location at the nearest town/city.