Who would get hooked with those limitations...
Basically they would be limited to a fraction of them game, what fun is that? (Not to mention no chance to pvp, which is what a lot of gamers enjoy). A lot of F2P games have minor limitations but nothing in that scale. Usually paying customers get special benefits beyond the normal without restricting the free players from experiencing the game in a 'normal state'. Obvious things for paying customers would be like increased skill gain (lvling in most F2P), unique pets, unique armor/weapons/sets etc.
The parts I do like:
No Houses (Would have to be a must)
25% Bank Box
No Vet Rewards (Not like they would get em anyways
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)
No Soulstones
But it would never work. If it was ever made that way of course UO would be ruined to the casual gamer. If you think macroing/scripting/cheating whatever you wana call it now is a problem... Well I suppose you get the point :x. They would have to take out recall/gate travel to ditch the majority of the scripting that could go on. From there EA's GMs would have to actually do things to stop whatever other crazy things are going on. It still wouldn't address things like the BOD system being exploited w/ massive free accounts etc.
It would be a lot more trouble and cost more than it would probably be worth or help for that matter.