NPCs breaking...

Well... due to an Epic Spell misfire and it teleporting a Soulborne Demon to the Vale (largely cause I forgot how the mechanic worked) it killed the Forge lady there before I got there and handled the creature. Might I suggest giving her (and all of the other Vale NPCs for that matter) the unkillable status?

It was you! And I had just come back to town with her mithral and potion! All that fleeing from grizzly bears and for what!?

I believe the vale NPCs are set to respawn after 15 mins. Last time one of them died, however, I don't remember them actually respawning at all.

I, too, would prefer they be unkillable... but that apparently presents an issue for players of evil PCs, and for characters that try to pick pockets, fail, and have the NPCs go hostile.

The matter at hand calls for them respawning at the very least, and I'd really suggest having them unkillable so that a lowbie can use them as a shield should things go sour. Evil PCs shouldn't be killing the NPCs in the Vale to begin with. (Just my opinion, but one that I feel has good grounds) Make a different repercussion for failing a pick-pocket attempt, and you've basically solved the issue almost entirely.

Second issue I have with them is that they still share a faction with a number of creatures out there that are literally designed to be killed by at east someone (i.e. Treants). Not a fun thing to realize that after a tough fight against a treant, I use a potion of escape to come to a hostile Vale. The only cure for that is death.

I cannot emphasize enough how much I'd want them on their own faction so that they don't react to your actions half way across the world (or further). Other towns are far more avoidable and I can sorta see not changing them all, but the Vale isn't really all that avoidable...

Agreed on all counts, 100%.