Some MMO's already kind of do that. I dunno if they still do this in WoW, if you don't rest (log out) in a tavern you don't get an XP boost. Then you have food in a lot of MMO's that give you buffs and stuff. Instead of debuffs/penalties though, most games frame "needs" like food and rest as things you do for rewards.
I think swinging too far into a "needs" system just wouldn't fit into a typical MMO though. That "dump" system, while pretty funny, would be a pain to manage. Even if we were to make a Survival-MMO to make the needs system fit, I don't see that appealing to too many people. It is a pretty interesting concept, but putting such a hardcore mechanic into an already niche genre doesn't seem like the best idea.