I'm not a fan on the lack of any sort of repercussions when PKing, there's absolutely no reason to PK strategically or avoid death. Death means absolutely nothing when PKing--you don't have a death statistic to worry about, you don't have to worry about not dying before the other person because you can just get back up and immediately go back to what you were doing. It seems like something you just spam mindlessly until you get bored and leave.
However I don't think dropping gralats is an appropriate deterrent to death... after all people could lose their actual money spent on the game since Graal doesn't separate bought currency from in-game currency. I do like the idea of spawn points though, but they wouldn't be predefined. The system I worked on looks for the nearest house and spawns you inside of it. If you had died again instead of spawning in the same house you'd spawn in another random house nearby, and if you died a few times at the same spot(for example, south of the Nafets bridge), instead of spawning at the nearest house, it'd spawn you in a house ahead of the direction you were going(going along with the example, at Taylor Richaard's). This would hopefully avoid issues with players getting camped and stuck in a spot and not being able to progress.