I too would much rather have you working on
They can also decide that if their main character dosent come up against one of their own padding chars then they can use that one to snipe at a top player. (I think thats the most likely scenario of what some of the duplicate accts are for)

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-- usually it means they've sacrificed long term investments to get short term investments.
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what would happen if there werent temp enchants?
either make the current ones fixed or remove them?

In regards to inactives - what you might find if you are able to get rid of them, is that some turn into padding (same purpose but people would log in so they dont appear as inactive), being duplicates which allow higher level chars to get that free ride.

Another option might to be make a few rounds of the pvp part non elimination. Not sure if that helps though. Perhaps if you got beaten you dont get knocked out, but if you get slaughtered you do?

apologies for the long post - bit of a brain dump there. Im sure there must be a reasonable solution out there to this, especially with the ideas popping up at the moment from everyone.