I think this being implemented would be nice but instead of dropping any random item you're wearing would be on a timer for a 1 day or something not being able to use it. This would solve people abusing the PK system and also solve the problem with players dropping high ticket items for the crazy dollar amounts they go for. I think it could work with the proper settings. 10 pks = 1 day, 1 item, 20 pks = 2 days, 2 items so on and so forth. I think with a plan like this it would also be scalable for those who have multiple weapons and gear to cycle through.
In addition there needs to be a way to remove all of your PK's as well. If you rack up 20-30 PKs trying to teach PK players a lesson it takes more than a week removing them.... This needs resolve as well.