I think it would be best and easiest if there where two different or seprate types of things used to keep track of the pvp and questing life points. I know there is a shop in game current with different "skins" representing your life points. So for example: What ever "Skins" players are using now would still be used to represent there pvp or "core" lp. Then a horizontal heath meter is added with bars in it that represents your quest lp's then when you complete a quest a new life point bar would be added to your health meter. You could do the same thing using a circlular pie meter with difined sections representing your quest lp and you would get more sections when quests are completed.

This type of set up would also avoid any issues with PVP and allow for healing of lps by potions/food items with out AP being a factor. Other wise If your trying to add in or use AP then I think your making it more complex than it needs to be. So in short just make several separate boxes labeled with and containing the respective differing lp's and magic meters.

I think I might have missed something in Dusty's OP. If this was introduced would the baddies on the world map still be "dumbed down" as they are now or would they be set up to be normal for noobs and stronger to effect players who are questing?