I would vote for a clear..but only if dusting was removed. After the clear, people would just power remort with dusting again anyway...Then people would ask for another clear. Character wipe would only be good if dusting is gone, and removing dusting would pretty much force you to clear it. Anyone who starts after that would be totally screwed, while all the high levels have no worries, they dusted when they had the chance. Maybe they could limit houses too..Maybe after 3 kills house pks are disabled for a certain time..maybe a few hours, a day, or until the next server reboot. It might cut back on power ranking...
Just a few ideas.