First of all this is a very subjective question.

Having said all that, Abyss404 is not going to be Hala or Mystara. We purposely made those worlds easy to get in and out of, just so we can test the concept of CoPaP. Going to Hala is/was about as hard as heading to the grocery store. This will not be the case with Abyss404. If you go to Abyss404, or if you start a character on Abyss404, it may be a looooong time before you are able to get out. It might take a few levels of figuring it out/doing the quests/ or whatever other mechanisms they/we put in. Whatever it is/will be, it's going to be HARD. So in effect, those people going over there with uber items may have the upper hand for a while, but after being there a couple levels and getting their stuff eaten, they may not be so rich when they come back. I'm just exaggerating, but you never know.
As for their punishments and their rules, that's for them to decide. We have no say in that, and CoPaP only suggests certain guidelines. I'll tell you right now that they ARE more strict than Avlis for many things, and people do seem to get banned from there more often. But you can take that in two ways. You can either look at it as a bad thing, or you can abide by their rules and have a lot of fun there. Your choice.