This is literally the dumbest idea I've ever heard for solving the karma problem...
Why? It does nothing to stop people from griefing. There is no punishment at all for forcing another player to fight against their will. You may think there is, but there isn't. You're just automatically assigning players to a faction based on their karma rating. And there's no incentive for someone to NOT kill their own faction and kill the other faction.
Karma at its core is meant to discourage open world PvP. Open world PvP was NEVER meant to force players to DFS. That is why PA heavily punishes players who decide to flag up and kill someone. You are disrupting gameplay by killing another player and it affects their player base which affects their yearly profits. You do not have more priviledge to be able to grind at a spot because you have better gear than another player who got there first. That is how it works in KR.
What they really need to fix is feeding to mobs. You should not be able to take a PvE death if engaged in PvP. Simple fix for this is to make the person who CCs or grabs you become the recipient of the kill should you die. (i.e. Your crystals do not break and their karma still goes down) If someone REALLY wants to grind that spot, they should just grind over someone.
The people have spoken via ratio and they clearly dont agree :P