I'll try to keep this subtle as some people might get a little annoyed with my playstyle.

Can you still gank as you wish including your own faction?

I remember only getting penalties if I killed them (not if I just damaged them?)

Do you still go to jail? How long is jail?

Can you still loot someones entire inventory?

No it's not an online shooter - there are consequences to your actions. Act as a criminal and you will be treated like one. However it's totally acceptable or i could go that far into saying encouraged cause fighting & war is what makes FoM's world go around.