My thoughts to this:
1 & 2. No, too harsh. Without breaking immersion, how would the aggrieved party (the victim) claim damages against their attacker? What incentive is there for the killer/pirate if they run out of money after only a few kills? Imagine they destroy a T9 with 500t of Pain... they could bankrupt themselves in a single kill, when all they wanted was 50t of Pain. This is horribly imbalanced and will drive people away from this type of PvP entirely, IMHO - ultimately resulting in the death of the pirate career,
3. No. Just, remove insurance entirely for criminals. So when you die, you keep what money you have but you end up back in your next ship, or sidey if you don't have another,
4. For every non-Wanted player killed, all faction reputation will decrease (except for where lore applicable (such as a pirate faction, or similar)) ,
5. Agreed.
6. Agreed.
7. I would increase them slightly, and make them universal.
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I hope we can agree that nobody knows how any one or more changes to the current system will effect player behaviour. We can theorise, make educated guesses and straight out gamble, but nobody with any sense will state that they 'know' what will happen should any number of the proposed changes be implemented.
Sure, on paper we can guestimate a cost analysis of a certain action and then extrapolate how such actions repeated a number of times across a slice of the player base might take shape. Ultimately, Frontier, if they're serious about setting up a game system that best reflects their 'vision' of the Elite galaxy, need to use the test server more, to try out new things on a smaller scale, with the caveat that testing and the related changes are under no obligation to ever reach the Live server.
Of course, the sample size of players will be considerably smaller compared to Live, but it would allow them, both developers and players, the play space to test suggestions and better gauge them. Again, and I feel this needs to be restated, under the caveat that testing and changes are under no obligation to ever reach the Live servers.