The ultimate problem here is that "Anyone can be _Example_ if they want to avoid getting killed." If it was at night, everyone would just stay in the villages at night. If it was everywhere, most people wouldn't like the game anymore. If it's everywhere but inside the villages, again, everyone would stay inside the villages all the time.
With that in mind, why not keep it to the borders between villages, so as to encourage conflict between neighbors instead of internally - while also allowing people to walk freely without fear of dropping dead to the nearest griefer? And if you want to get rid of someone...yeah, you're going to have to find a way to get them there...forcefully, most likely. Alternatively, you could always lock them away for a long, long time.
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