Even when I never loot, I believe looting need to stay as it also are used as punish for bad actions. If you play Trammel and someone keep trash talk you or in other way grief you, you only have one options, call a GM. On Siege, they may find them self looted a lot until they learn to behave.
Siege seem to get more players and special more PvP players, both good and evil and new PK's on Siege will learn, dry looting their victims will get them in bad standing with the shard. Some will choose to pay them back the favor, others will refuse to trade with them and they will have to changes or give up.
The real problem on Siege, is items are balanced vs Item Insurance on normal shards. We had tried in the past, to ask for changes, but the shard rarely agree, so it is hard to ask for something if half of the shard say no.
I do believe most agree, that changes to the way we get items could help.
Better drop from monsters:
Give Siege chars 1000 basis luck, that will stack with item luck
Add 2x resource drop, also for imbuing resources.
Increase fame on Siege monsters. (to get higher level of drop)
Other changes that could help:
Get rid of 3 x NPC prices (special gems are very expensive)
Lower vendor fee or remove it (so more will stack their vendors)
If it get easier to replace items, getting looted won't be as bad as it is now
An other thing that could help, allow recall on Siege, maybe with 10 sec delay
But again, this is my opinion, and several do not agree with me
If we can keep the new players we are getting right now, we will get even more players. For most, it was not the looting that made them give up, but the feeling of playing on a dead shard. Like in your case, most will give back most of the items again, if their victim ask nicely instead of start trash talk them. Also if they lose their only suit and ask in Gen chat for help to get a new basis suit, with LRC and maybe 1-2 more mods, someone will help, that be a crafter, PvM'er or someone buying a suit from vendors. I had often seen someone buy a suit from my vendors and give to someone, that be a newbie or dry looted player.
The same PK may dry loot one player and res and not loot an other player. Trash talk in Gen Chat and insta ressing and try to loot body before the PK is done looking at the body can make the PK mad and a mad PK is not kind.
I know Freja from few years back. I think i met her around 2013 when i was a member of NEW2. To me, Freja was always about Neutrality. She is like Switzerland. It is hard for me to imagine her luring some poor player to her home just to be murdered and looted. She is not a boogie man.
Thanks for the nice words, and you right, I would never do something like that, but I believe most on the shard know that

Welcome back, say hi to me next time you see me.