I'd rather steer the normal mode more into a PK mode and add a hard mode than a PK mode, simply because a PK mode with stat setting can't thrive without free items such as rune. While it can be done, the biggest issue I see is that it devalues normal or hard mode PKing when your opponent is a PK mode account using free items (that would end of consisting of armour, weapons like dragon, food and potions, etc).