Penalties for Murderer's - not Rewards.
I'm afraid this view simply isn't rationally tenable anymore. In fact, this has been the case for close to a decade. You might get some kind of emotional reaction to being killed by another play in Felucca, but for all intents and purposes you can begin and end playing this game without ever having set foot in Felucca or one of the areas with its ruleset.
What you're speaking about is a kind of punishment in a retributive sense - you want to punish and punish hard! If you're red it means you're a bad man! This also really isn't the case, it just means you've participated in pvp outside of factions or guild warfare, and there's nothing wrong with that - it's an integral part of the game that has been there since its inception. In fact, one could very easily argue that murderers get one of the largest rewards in the game - we are allowed to control the influx of powerscrolls into the market. Which, I think you would have to admit, is not a penalty for those doing the killing.
I think you're about 8 years too late with any argument for the punishment of murderers, but my guess is you simply want to interact with it on an emotional basis.
Now to the OP:
I'm not sure Chaos as a virtue would suit murderers. While Uvtha rightly points out that chaos isn't a virtue per se, like Lord British's system of virtues, it is more an ideological counterpart to his system. Based on freedom and individuality, chaos represents a distancing of the self from the cardinal virtues of LB. In this way, chaos isn't something which could be invoked, it's more like the act of revoking virtue itself and focusing on personal choice and freedom unguided by a system. (Think Sartre's existentialism if you want to be srs about it)