While I quite like the sound of removing most shops from home, I personally think it is a better idea to keep a range shops available for players to buy basic items from. This is because I strongly feel that this decision will help retain some of the new players that join; while some players will be happy to craft armour and weapons from the start before they start upgrading their account, other players may hope to quickly obtain basic armour and weapons to start their training process.
The shops should not be overpowered or harmful to the economy, but more for convenience and ease for the new players to use without having to experience a tedious process of obtaining gear at the start, which could essentially cause new players to leave the server.
These are my personal views, and as always, feedback from other players will be nice so that a decision can be made in the best interest of the whole community.
I voted YES - I think ALL players should lose their items on death, even outside of the wilderness. As Slip said above, it seems too easy to not lose items on death. I do however still believe players should be able to purchase their un-tradeable items back on death, for a certain price.