I don't like the idea of respawning at a save point if you die. I'm not sure if I read enough on it and don't quite understand it-- but what I do understand is that if you die, you respawn at your bed or something like that. But hear me out if that is the case.
I like the idea of my character dying for real. But what if you partnered or married a NPC and had a child. You can visit that child and activate them to do a chore for you, and you can have them gain skill points while you're away. (One per player.) If you die, the NPC now grows up and you play as that character with the skills you taught it. You might be overly protective of your kid and not ever have them leave the house, but it would limit their survival and other skills once you play as them.
Or if marriage isn't your thing, hiring a NPC as an assistant, and instead of having a kid, enact them as a benefactor if you die. So if you were a well known and well skilled smith/cook, and spent a lot of time with your assistant teaching them-- if you died out on the field you can come back with 'some' of the skills you invested in your assistant. Maybe even avenge your master's death.
It would make enslavement and kidnapping interesting because you'd want to get your wife/husband or kid back, and also protect your home at all costs as you shouldn't be able to respawn as your kid if they are currently in a captured or in an enslaved state.
Ah man, it'd be great to come back home from hunting and find out a bear or bandits killed your family. And like normal NPC they could wander the village unless you strictly told them to not leave the house. (In case of war and such.)
Though, there would definitely be a limit to how much skills you could put into your benefactor or kid so death has a sense of weight. Killing villagers would leave an impact on players, and protecting them would give a sense of worth and I'd feel secure if they were secure. People might be hesitant to engage in war because the weight of death too. But it'll feel so good to demolish the enemy if you do wage war!
What'ya guys think? Don't worry, I'm probably just dreaming.