You know, the last time I saw this argument come about, it ultimately derailed into something or other about sexism or some such nonsense. That being said, I see this thread going places~.
But serious talk now, and I shall be blunt.
No matter how much you discuss this. No matter how much you debate it. No matter how much you attempt to make justifications for why levels matter. No matter how many examples as why the writing is what matters or the time spent determines validity.
There will never be an official ruling for what is and is not OK within the RP setting of this game regarding the presentation of characters.
Everyone has their own set of standards on what they think is chill and what is pants-on-head silly. You can {try} to make something that encompasses everyone's interests, everyone's beliefs, and everyone's standards. But it will ultimately fail.
However, there is a theme amidst all of this discussion, and it's an important one: trust.
No matter what the situation is, (levels, MRP, SUDDENLY DRAGONS, whatever), if there is no trust involved between peers, then RP cannot exist. When you RP with people you know, you know that they'll respect what you feel is OK, and they will LISTEN when appropriate. Because COMMUNICATION allows for people to portray how they play their character in the first place.
Without that communication, there is no RP, because there is no exchange of ideas. If no one listens, then nothing happens! And at that point, you aren't left with RP. You're left with (*drumroll*) nothing!
The problem stems not from what should or should not be correct. It stems from people not communicating what they think is and is not OK for them. And, shock and awe here, everyone has their own standards, limits, likes, dislikes, and so forth!
Some people are going to be more open or expect more people to {be} open when they make an extreme action with their characters. Some people are going to be more reclusive and cliquish with their RP as they only really care to RP with friends rather than complete strangers. And then there are some who like both. There are people love their characters. People who view them as tools to throw away. There are different levels of investment, and there are different levels of committment to lore.
But in ANY of these circumstances, no matter how ridiculous, can anyone say "No. That is wrong. Get off the server."?
No.
Sure, there can be a majority disagreement, but that does NOT account for every player in the game. It does NOT account for the people who don't even involve themselves in these discussions. Within your guilds, groups of friends, go nuts. That's your group, and you have the say-so as to what is acceptible and what is not, and likely you are with people that will agree with most if not everything stated.
When you play in the open world outside of that circle, however, you extend your hand to anyone who has done the same. Some are going to be more receptive than others. Some will use completely different language than another. And some are going to play by completely different rules than you are used to.
So what can be done?
The simplest solution is to be open with one another. To not be afraid to talk things through or openly discuss what someone is comfortable with. And if nothing can be decided, there's always an option to get on your mount and fly off. The RP police isn't going to arrest you for disagreeing in being a part of something if that was something you never agreed to in the first place. That implies a lack of trust between players. And without trust, RP cannot exist.
Which is why I find it absolutely hilarious that people knock on intimate RP (some of you may see this as being ERP). While it may not be OK in the ToS or publically acceptible with most circles, think on what is involved: two or more individuals who have similar tastes in something which work together to foster something through creative collaboration and trust what the other will do. Sound familiar?
Another way of phrasing it for those who inolve themselves in intimate RP (no matter the kind): would you open up something deeply emotional or sensual to a complete stranger who does not know you or you know them? That sounds like a recipe for disaster in most cases (though there can be some very, very strong if rare exceptions).
My point is this: there is no feasible or reasonable way to dictate to someone what is or is not OK to RP in a game where no such jurisdiction exists. In the open world, the best you can do is keep yourself open to new (if strange) ideas and to respectfully decline those you want to have no part in.