have this problem too, did not know that it's a bad idea to put 10 backpacks into backpacks.
PLEASE VOTE UP
This has to get fixed!
I'll try join-leave-join-leave too.
Please tell me if there are easier ways to get this fixed.

A destroy character button in menu would be really nice.
Furthermore character save should be more stable, I lost my char 3 times just cause some bugs decided to randomly delete it when I wanted to join servers.

http://www.youtube.com/watch?v=A29-75325kg

far simpler:
Solution to combat logout: 15 Seconds logout delay (Player stands unmovable)
Alt F4-> Server keeps player 15 sec longer active

Solution to server hopping: fix the loot system so there is no more need
or: limit server switching ability (3 in 20min?)