from what i've seen in news and those crappy shakey cam videos, it looks like the "realistic" mode as they are calling it, would basically be the same level that RO is right now. their new "relaxed realism" would include these extra new "features" that most people here, including myself, see as not being realistic as the attempt to ease new players into the RO style.
that said, it would only make sense to offer a third mode that would be even more realistic than the "realistic" mode i.e. current RO. that would include disabling things that have already been mentioned such as deathmessages, overhead map, and capbars to list a few. if you think about it, right now there are some mutators that disable a few features like no death messages etc... however they aren't used anywhere anymore. they are more of a hassle because they are mutators. if those features were by default disabled as part of a preset mode, or at least server admins are given the option to enable/disable which features they want, then you offer a lot of variety and it makes it easy for admins.
there's three categories of people that would be interested in playing HOS: those mainstream gamers that want RO "less" realistic, those current RO players who want it to stay the same as it is now, and those RO players who want it even more realistic than it is now.
i see no problem giving each group what they want in order to get more people playing. it may split the overall community into different sub-communities, but what's wrong with that? look at the community right now and how split it is with only having one mode....it is inevitable that large communities will eventually develop smaller sub-communities within the main group. as long as there are a lot of people playing the game in general, it's not a bad thing, especially if you get to play the game the way you want on whatever "realism" setting you choose.