I'm not sure if the situation you're positing actually even happened to you, or you're just conjecturing up some bad situation.
When you are killed by someone using the censer, you get a 10 minute debuff. If they kill you again while you have that debuff on you, they don't get a bloody coin. On TOP of that, only ONE person that kills you out of this group of five, or what have you, people, can get a bloody coin from you anyway. It doesn't give one to everyone involved in killing you.
If you remove bloody coins from the equation, then it literally becomes a matter of ganking, which they could have been doing to you if they were on the opposite faction irrespective of the censer or not. Ganking, which if you'll recall, is something that can happen on a PvP server.
If it's not for you, then, obviously, PvP in which you might face people trying to kill you in the world apparently isn't for you. In which case, they have PvE servers for just that.