No one's replied yet? Weird..
Anyways.
Quoting XeNo right off the bat.
My own 2cents:
Current karma system is fine (in the time I played) and changes to penalties will be coming soon anyways (probably).
Like XeNo said, it isn't the karma system, it's how you're choosing to play the game. Yes, you can be killed for T-Baiting but it's player's discretion whether or not the kill happens. Just ignore the stupidity and call in an admin to handle it if you think it's getting out of hand. If there's no admins around, it's better than nothing to just post a player complaint on them if they're trolling by T-Baiting.
The karma system is as harsh as it is for a reason. It forces players to act carefully and think twice about shooting down someone who's just "suspicious".
Despite all that being said, I'm all for changing the karma gain/penalties around again but, in my own play time, I haven't really been affected that much by the karma loss. In about 6 hours of playing like a complete scrub (dicking around with @Exk) but also playing carefully, I was able to gain around 250-300 karma easily (I've accidentally killed an innocent or two aswell).
It's not that bad to be honest. However, I see where you're coming from and think a change to the system could be a welcome change.