It's easy to DIY this feature. If your character dies, log off and delete it.
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While I totally get an option like this would appeal to some it has too many faults. Less people willing to run content outside of the groups they know and trust, fewer learning parties, griefing targeted towards those that use permadeath. In a game that didn't require so much time devoted to it permadeath would be fine. But here it's just overall a bad idea.
We have deep dungeon honestly.
Not sure how much this would get used TBH considering how many people cried over just losing a little EXP when they died doing something stupid in Eureka and couldn't get a raise.