In Meridian 59, when you died and you were bad, you would literally get ported to hell when you died. It was it's own zone and you have to fight your way out to get back to the real world.
While there is no jail system or even a law system in place at the moment, I think it would be cool that when a law is implemented, oblivion might be waiting for the wicked.
Maybe if your reputation as a villain got really bad, when you died, you were sent to an oblivion zone and had to fight your way back to the real world. Once you made your way out, your "sins" are forgiven.
This would not have to be a real time consuming area, but just enough to make it a punishment.
I can tell you, as a player who has played this system, it was really fun. It's like a mini dungeon.
I know some of you will read this and your first reaction is to just see this a delay from the game, but it really isn't, it is part of the game. It is fun.
If you are in a dungeon with a group, you would not be sent to oblivion. That way there is no delay for the group.