Maybe I'm just brain-blocked today, but only one thing you say doesn't run through my head as 1+1=3, and that's the "why should someone who logs in earlier get xp faster than people online later" question.
People at 7pm-8pm have people to rez them, people to group with to lower familiarity, people to get them gear, people interact with, etc, so on. The argument could be made that those who want to play the game in the off-hours would not actually be leveling faster at all - this change would just mean they aren't being punished for staying on when no one else is on. It seems like the case, now. And the fact that argument could be made makes the change worth visiting.
Alternatively, if they do get an advantage, why shouldn't they? They're enduring to wait for people to log in so that the MUD is populated. They're doing the mud a favor and the game should do one in return - because, I promise, if you're online with 2 people logged in, you are doing a huge favor. It's not a privilege or a bonus to be online with that few people on, and if you would like to think the ability to rez without wasting an hour of your time is an unbalancing bonus - try it for a week. Any and every form of leveling in certain brackets can be considered stupid. So you want me to not play when priests aren't on? That's beneficial to the game.
Respectfully (and I mean that), the rest of what you say is just 1+1=3 to me. If people are encouraged to play when people are offline, that's encouraging people to play. You're exactly right, the "M" means "multi" - and if no one's online in a period, why should anyone play? Why should we tell people they get to suck it up and deal with no interaction, a harder leveling environment, and no resurrection capacity that doesn't suck up more hours of their time in the game, just because they want to log in during off-hours? Patronage should be promoted, no matter what the hour. Plus having people on the who-list always looks good.
Also, are you seriously, seriously, SERIOUSLY telling me that you are trying to force people into resurrection RP when A PRIEST WILL NOT BE ONLINE FOR 3 HOURS? Come on, now. That's just dense. This isn't some 20 people online people autorezzing bit. This is, it's 2 people online, there's NO ONE THAT CAN REZ OR GIVE LIFE IN ANY WAY, so if I don't want to give up my time spent xping I have to waste more time. If players are less than 5, and != priest, autorez activated.
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the point isn't to play by yourself
You're exactly right. It's why we should take a step to encourage people to play when other people aren't normally on, and to make the time for those who are alone easier until people are. Does it have to work? No, not all the time. But some of us don't have time to play during busy hours, like me. It's a very fine line between me playing this and me playing another game, and it just as often tips to the other game as doesn't. I'm putting up an idea that would keep me on and active more. I don't propose to say what's in other peoples' heads, but if you want people like me around (and a few others have agreed with me, so them too) more often, it's an idea worth listening to. It's just one perspective and open to being shut down, and some points you make are good, but - and I mean this with the utmost respect, as I'm not really here to just talk trash, I'm just abrasive sometimes - some of what you say seems blatantly detached from the correlating logic. Bonanzas wouldn't exist, GRPs with rewards at the end wouldn't exist, etc. It's bribing people to participate, by your terms, which seems to be equated to some death adder. Bonanzas are the same thing. So are rewards for high activity. Horrible for the game? I call it making the game fun.
This is a game. Don't forget that. Encouraging people to play with fun quirks is never bad. It's not unbalancing or unfair.
The logic behind this change is meager benefits that self-scale and become invisible in even sub-optimal circumstances. It impacts a limited targeted audience, in a short-term but noticeable way, and makes things entertaining.