chadz, that idea would be really cool for testing out builds!
the main thing I don't like about peasants is that it gives people a really bad first impression of the mod. They're also really useless and can't do anything but hide, leech xp, and mildly annoy people with stones and pitch-forks. like 20% of the server ends up being completely useless chaff at any given time. Starting people off at level 5 or 10 with some starter gear (a cheap crossbow, shield, and a spear?) would let them contribute a little at least, and try out a few different play-styles before they commit to what sort of weapons they want their character to use.
cRPG as it is now is very unfriendly towards newbies. They start off as a peasant and can't do anything but get killed, and any mistake they might make developing their character can only be fixed by starting over or retiring 30 levels later. Add some sort of re-spec ability, and start newbies off with a crappy spear or a shield at least (think militia instead of peasant), and it'd really help with first impressions.
Heck, just starting peasants off with a shield would go a long way. I know that a peasant can buy cheap gear pretty much after 1 or 2 games, the problem is that most new characters like to stick around for several games so they have some actual experience and money to spend when they log out and risk losing their spot on the server.
Also, another thing: Not everyone plays cRPG for the grind, so don't think that having a huge grind is a desirable gameplay feature (obvious, but some people in this thread seem to think otherwise). Being able to build a character and see how it fares in M&B combat is cool, and cRPG offers a lot more customization than native MP. That's why people like it! Being a peasant offers no customization at all, you're the same jerk with a pitchfork as every other peasant, and even if you buy some gear you're still useless until you have enough stat points to meaningfully distribute (and even then, you're probably still useless).