I'm not entirely sure what I think of this. I think it'd be really fun for a lot of people, but I am concerned how much it will affect new players. Allow me to describe a scene I envision if this were added:
New player joins the server, gets through tutorial, and is told they can get stuff for free in the Wild. So into the wild they go, with their leather armor and wooden tools. As they are chopping down a tree, some really good pvper with this compass jumps out in their max armor, and hits them twice with their sharpness V sword.
Why should the new player stay on the server? If say, I, die in Wild, I can just go home and get another set of armor, no big deal. If a brand new player dies, they've lost literally everything. And if they can avoid it by staying still, any noob isn't going to know that, so it'd be heavily abused by older players. Fact is, when people die, they always rage a little. A new player has no attachment to the server yet, so why stay when they have nothing left?