When characters die, they should suffer a moderate penalty. It should not be the end of the character, but it also should not be something that happens lightly. Ideas: Lose all gold Lose most valuable item? 50% chance per item of losing it? Losing stat points? Need to go on a quest to repay resurrector, if fail quest, die for good? If so, cannot keep things found on quest.. Characters presumably are resurrected by some priest somewhere.