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IMO it should be on Quit by default and remember what was the last action used as most players just end up switching to a different character over time.
Although, for new players it should be set on Quit by default.
I'm sure it makes a very small difference but making quit an extra click away might help keep people playing in some rare cases. If someone wants to leave the game they're gonna select quit and go, but in case they're just bored the menu suggests trying another character. It also makes exiting the game a more concious choice. You don't want people to accidentally close the game if they're opening this menu to change server or character.
Hmm.. Good point, WildX. In this case we could maybe have it default to Switch character if the player has more than one character or Switch server if not.
I actually like that I can just esc my way out. Helps with only one hand too. I prefer quit, but it is possible for my cat to esc me out the way it is now, though its never happened in all these years and even if it did.... no biggie.
I'm fine with actual ESC key behavior.
And I prefer to discourage too much frequent alt switching due to potential unfair advantage in game (not every case is like that but still, you got to wait ten seconds before casting magic spells again).