Back when I first heard about TERA a year ago, their comments on how PvP would be handled was really vague. Now that they've found a publisher to bring this Korean product to the West, and seeing that it will actually be a subscription-based model, I took a look over at the site to see if there was further detail.
But looks like that aspect is still undecided. They have a poll in their forums asking players if they would still play TERA if PvP was highly limited. Based on the current poll numbers, about 50% would not play without open PvP and the other 50% either don't want PvP at all or prefer PvP in a battleground/arena environment. But if you read the posts that follow it, you would think 90% of the posters prefer open PvP. PvE types tend not to post as we don't want to be ganked in the forums any more than in our MMO's.
My guess is they will go with some form of forced PvP. It may not come till later levels, it may be through content restrictions, or through some other mechanisms. And that would be a shame, as the majority of the Western audience won't play it. They may try it. They may enjoy a few levels of it. And then they move on.
The world graphics are pretty from what I've seen, and the character models are pretty spiffy too, including the obligatory cute player critter. It's still a year away from release, so maybe there's still hope yet for me.