When your health runs out, you're Downed:
If you can't get back to your feet before your Downed health runs out, you're Defeated:
Like it was mentioned, I
could be bandaged and CPRed back to life by other players in either of those cases, or teleport back to any waypoint I want after Defeated. I lose nothing by dying except some damage to my armor I need to get repaired, the (minor) cost of teleporting to a waypoint based on distance, and a short-length decrease to the amount of health I have in the Downed state - 25% less health each time; after four, you are instantly Defeated until you stop getting yourself killed.
In World vs World pvp, it's the same, but the killer(s) get XP and loot for killing the other player. The loser only has the same penalties as in pve death; the loot doesn't come from their inventory.
Clothes: Yes, the starter armor for magical types is how you described it. And, it's so begging for Sailor Moon jokes. (In fact, my family and friends are already planning on all of us making the Sailor Scouts with alts as a joke, but I'll save my mix of lol and hate for the ridiculousness of Tera.) But, there are so many options for looks, including over 400 dyes and up to four dye locations on each item, that you can mix and match quickly to get your own preferred look. And, actually, the showing of skin is fairly gender-equal, and mostly not a big deal like the internets want you to think; I'd love to try some of the women's outfits IRL. An example is the gladiator-looking armor:
[spoiler]Men:
Women:
[/spoiler]A big focus is on personal styles, so the poofy micro skirt a caster gets at level one is just one of a wide spectrum of appearance choices you can have in the game. And, the gladiator-y armor could just as easily be realistic steel from head to toe. My elementalist was looking like this not long after the tutorial:
For RP, Arenanet won't be labeling any servers as anything. But, there is a huge RP community already among the beta testers, and unofficial RP servers are already being picked by the community (Tarnished Coast for NA/Oceania and Petrified Forest for EU) just like Star Was Galaxies and Lord of the Rings players did. You can guest on other servers for free if you have friends there, so you aren't tied down. You can only join in WvW pvp from your home server, though.
There
are BoP items, but they're mostly just cosmetically-different armors with identical stats as non-BoP. Most bound items are Bind-on-Equip, so you can sell and trade them; which by the by, the Trading Post works exactly like EVE's market, not an auction house.