I strongly believe that such behavior is due to common conception from all the other games where you train on NPCs and you PVP for ranking. In MD there is no such thing training and intentionally damaging somebody (be it in order to inflict skilldamage or to wipe out vitality from new player who can't regen or be it to fullfil kill contract) is the in one and the same way, PVP. Mainly mindset of players is the problem and that's why they run away in low levels but only if they refuse to interact with others and learn. Honor system, balance and win-loss ratio is the problem for mindset and doesn't actually make sense. For new player it all is weird, first question that pops up is why win-loss ratio and honor have anything to do with training. Such stuff confuse new players. They don't see difference between training and competition, afterall there is thin line between it.
I don't think that giving more npcs would be blissful idea, things as they are don't even allow beating same npc twice. As much as I see there was this idea before in MD and Empty Aramors and Tiny Men were made as MP2 npcs and I don't think reviving this concept would be good idea. Due to how whole combat is at the moment I still think there really should be 3 separate MP levels in which players would learn combat step by step, currently each of 3 mp levels give specific and different challenges and focuses. Problem is this demands population, MD doesn't have population to satisfy the needs for which this sort of system was built. The whole point of this all was to have decent amount of players at same level of knowledge and strength, something... which would demand 10 levels nowdays and playerbase of 500+ players.
In my mind, what ever is currently done with combat is a big bite to chew on and it wouldn't solve much. I would leave it as it is and shift focus to something else like improving inventory, volition, allowing people to make items, make gathering more available, do that quest thingy that Mur is working on now. I just think that fixing or redesigning combat at this moment just isn't worth the time nor effort. I would enjoy the game much more if it would allow RP to be much more integrated with all the custom items and quests rather than have combat fixed. More integrated RP beats perfect combat system any day in my opinion.