Not a bad suggestion at all. Although the traveling would need to be free of cost then (to at least the lower level zones.)
And for he Morninglord church, I wouldn't mind seeing it go (being part of the faction atm myself) to be honest.
Ilie in the Slums sanctuary should have the ability to ress, people might focus RP more around the town then instead of the outskirts.
If Lizucia can no longer ressurect, I'm quite sure that'd mean a certain decrease in activity around the church.
Pherhaps make the Morninglord church just that.. a church, no ressing and finally cleansing the catacombs. So it's just for ceremonies, etc.
At least finally ending the catacombs tale might be good. Pherhaps make it level 2ish? Instead of level 5-10 as it is now (I mean the entire thing, so the tombs are useless for anyone over level 4?)
Either way, by encouraging more things in town, pherhaps we could use buildings like the Prancing Nymph or other rather unused brilliant places more often?
(For example: If Ilie in the Eternal Dawn Sanctuary could ress, then lots more people would possibly hang around town instead? which makes them more likely to spend the night in town to.)
I just hope my random ideas do not turn into "Now we'll just cheese and run from the outskirts to the slums to ress and back into the fight." but I doubt too many PCs would frequenly do so..