I don't think if we die from a mob that anyone should be able to loot us. I like the idea of a friend helping out, but I can understand the pride thing too.
I know Snuffy and I have tried looting each other but it told us basically that we could not loot ourselves and a loot window never popped up. I will try to drag Snuffy into game to test this more. I don't know if it makes a difference, but we were in PvP lvl 3 area.
Level 0: No PVP (cities)
Level 1: Low-chance-hit PVP, no loot
Level 2: Mid-chace-hit PVP, no loot
Level 3: Full-fight PVP, no loot (Alpha-style PVP)
Level 4: Full PVP, Loot: Valuables only (wallets not affected)*
Level 5: Full PVP, Loot: Valuables, resources in top-section of inventory*
Level 6: Full PVP, Loot: Valuables, items from top-section of inventory, all resources*
Level 7: Full PVP, Loot: Full robbery (all items and resources)
Level 8: Full PVP, Loot: Full robbery, including wallets
Cheers
Axle