Also, if Elite is meant to be a fun game, should players in Open have the option to opt into (or out of) PvP? Or, if Elite is meant to be realistic, shouldn't murder in game result in life imprisonment?
To be fair, in game terms there is no murder, because players never die - there's only destruction of property.
And actually that is the reason why I have problems with Open - while plying Solo game world makes more sense - if I'm destroyed, I can suspend disbelief easily - it's like loading a save.
Game world is fantastic not because of FSD drive, but because it is full of immortals (in Open). They know it and act accordingly.
Of course MMO game wouldn't be possible without this kind of mechanism. It would probably be even worse if in-game destruction had more consequences - life inprisonment for criminal included.
I mean, if someone is a jerk, he will still be able to ruin other player experience just for the fun of it, while damage and grief he inflicts could be even more severe then - and I came to a conclusion that's why things are designed in this game in this manner.
There's actually very little that could be done to prevent that other than reporting players, blocking them and making it known in to all community what kind of behaviour is unacceptable - not that it would be easy to agree on that point
As for harrasment,
For me it's perfectly allright if someone plays as some evil incarnate, shooting innocents. Powerplay, piracy, any other kinds of in game motivations for destroying ships are obviously acceptable, but even shooting unarmed harmless vessels can be allright. After all we're not roleplaying police to ask everyone what their motivation was. Problem arises, when someone starts targetting a particular someone else - a player not interested in confrontation. This is crossing a line. But of course, there is a way prevent this, like blocking a player (a mean - I hope. I've never used this option before).
And as for bloodthirsty murderers, this could potentially even be fun - imagine that you want to f.ex to haul some cargo through a system where a killer is camping. He attacks and destroys everyone for the fun of it. You could ask other players for help in getting rid of him or protecting you - there are probably many that would find that a fun thing to do.