Nod, I agree with the idea of hitting more, but the truth is, that once that newbium weapon the guard gives them is gone, they more than likely won't have the resources to get an 'ok' weapon made to level past that point in any way that won't make them rip their hair out (Iron? Ugh...). As it is, 'Loth is a rather useless city, there's absolutely no point in going there, let's make it a place where we can buy some elven made goods, mind you, the guards tend to kill newbies, so that might need to be looked at as well.
With the way the economy is set up right now on Darke, it's too expensive for new players to get decent stuff to level, and it's very easy for an experienced player to get anything they want because they already have the equipment they need to get stuff. Having decent equipment available in Loth, maybe something with slightly reduced WC and some crappy acc/speed runes, might give newbies a chance at leveling, all while gaining mcgrail etc so they can eventually afford better equipment.