Yeah, I like the idea of an HP cap as well. Lot's of great ideas popping up here.
Still, some sort of soft cap to skills would help keep that never ending feel that TRPG has. Basically, make it harder and harder to level your skills, but you could theoretically get them up to 20k if you played long enough, of course, it might literally take 100 years of smacking at the strongest enemy with a weapon that hits every second.
Also, I think bashing should be nerfed a bit. Especially if the system is to change. Not only should we reduce the damage, but I think bashing should require MP (to simulate stamina, and MP would be harder to come by for a basher, since they'd have low energy), and a missed bash should still require a player to re #bash. It would add a huge amount of skill to a very powerful attack.
Various other changes would be nice, such as actually differentiating the various weapon classes a bit more. As it is now, bludgeoning is simply the best pvp weapon skill. My previous suggestion would help a bit with that, but adding special abilities for the other weapons could be a way to help balance this a bit. We could rename the bash skill something a bit more broad, such as weapon mastery (or simply mastery), and it could be all inclusive for the various weapon classes. Your actual player class would determine the type of weapon you'd probably be using. A thief would use mastery for backstabbing, a blunt warrior (barbarian?) would use it for bashing, a slashing warrior (knight?) could use it for something new (I like the idea of a possible crit, based on how high the skill is, but that would mean a completely different method of training for slashing), and archery could fire shots that go faster and further, maybe a special high mastery ability called #snipe that works kind of like bash, and basically fires a single arrow like the laser rifle (which would also increase the effectiveness of the weapon). I also think that polearms should be their own weapon class, but I don't know what a special ability for those would be.
Also, a small suggestion for archery. Headshot damage would be nice.
As for the limitations to the various classes, it would be nifty to be able to "subclass" at some point. Maybe at RL 50? Subclassing would allow you to use the defining skill(s) from one other class. As a warrior, you might pick up defensive casting and energy from the healer class, or offensive casting and energy from the mage class. A mage might choose to sub warrior, and wear the heavier armor and have higher HP, or sub healer and be able to heal and have extra MP.
Also, a special skill that becomes available to gods would be awesome. Maybe only gods could earn the ability to transport (Yeah, I know, transporting seems almost mandatory, but the class system would already limit the ability by quite a bit, this would allow every class to earn the ability). Other special abilities for gods could be the ability to bless (or curse?) one non-god every hour or so, and a system that would prevent the god from relogging to reuse the skill would be great. Basically abilities that allow the uber player to help lowbies by buffing them, or moving them about. Gods could be represented by an orb over their head that provides light (maybe even colored light, depending on whether you're merciful or wrathful?). I really REALLY like the idea of god specific abilities that only affect other non-gods, as well as various advantages for being merciful by helping, or wrathful by harming (which would encourage players to choose a specific route).
And finally, an ability to cast on a specific target would be wonderful. Basically meaning you wouldn't have to actually aim at the target for certain spells, but simply type #magic "name" to cast spells on said player or bot. Of course, range would have an impact, and you'd have to have a line of site on the named character to cast on them. It would help with healers though. The same ability could be coupled with the aforementioned god skills to allow gods to use those abilities on anyone currently on the server, i.e. #transport Dyre jaten, #summon Dyre (brings player to you if they agree), #bless Dyre, #curse Dyre, #vorpal Dyre, #dull Dyre, etc...
Again.... I have plenty of ideas. Limitations are always good, and reaching god status should be the ultimate goal. The remort level could be capped at 100, and gods could gain status by helping other players. In fact, it would be nifty if lowbies could #worship a god (again, once a day or so, to prevent spammage). Gods with high worship ratings could have shrines set up for them that give them certain advantages (to encourage godly behaviour). etc...etc..etc...