Same thing here with the bandits. Paid the toll, then I was later killed while mining by a diamond everything, Who then tried to sell me back my diamond pick at a ridiculous price, and told me to pay the toll again.
If I'm going to die anyways... Why would I ever pay the toll.
I spent hours building for them, then they killed me and took my stuff. Thugs. Completely ruined the RP for me. Didn't want to even play on the server anymore
The fun of the SW and bandits, etc, is the fantastic possibility of roleplay, but when you're slaughtered after paying tolls and lose expensive tools it took many hours to procure.... It's ruined.
Two solutions I can think of is punishing bandits who break their own rules, or more effectively, Death Control is toned down a bit. A tool it took me 5 hours to make ruins the game when it is taken and he tries to sell it back.... Even though I paid the toll.
I think the worst thing you can do on a server is ruin the RP experience, and that definitely did it. I have a wife and kids, a whole lot of work, etc. Losing a few things isn't 'tough luck' or 'that's the SW', it's a gamebreaker.