I liked how wow did their death system...
You die, you lose 10% dura on all gear on you currently equipped (Make it where if not wearing full gear + weapon all gear on you -10% dura)
You respawn back at whatever last aether you touched (no sickness etc but very low hp and mana)
Maybe make gear damage more noticeable too, like when at 35% you'd see on your gear the DEF 132 and beside it in red (-62DEF) or something and when its red DEF 132 (-101)
That way people can see how much their being penalized for damaged gear.. and want to avoid dying as much (especially with the lack of crafters these days as their all bots hiding in remote parts of the world)
/just random idea

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