Perhaps this has been mentioned before, but what if death will automatically reduce your gear to a 0% damaged state and that when damaged, gear will actually greatly hinder your fighting abilities.
For example if your weapon is damaged, your actions effectively do 0 damage. With damaged armour and accessories, they would actually hinder your stats, stamina or HP/MP like say, reduce your hp/mp to 1 if all your body piece is damaged or make you move as if under the effect of gravity if your shoes or pants are damaged for example. Of course, you may say "People would just take off their weapons, armour and accessories!" in which case, it could just be made so that damaged weapons, armour and accessories can't be removed until it is repaired to good condition.
Some reasons I think this would be a good solution are:
-It would provide a good reason to fear death as it effectively disables you as an adventurer/party member until you can get to a repair NPC that would charge exorbitant prices or find a crafter to repair for you. (Of course, in this case, it would be nice if it was changed so crafters can repair gear that someone is currently wearing)
-It would provide good reason to keep your gear in tip-top shape at all times and will likely bolster the usage of repair wards.
-It would provide good reason to wait for the Raise benefits as described by Yoshi-P instead of simply choosing to return to homepoint.
-It suggests a more realistic cause and effect of being beaten to death as well as consequences of using damaged gear. (ie. Broken weapon doing 0 damage is like trying to slice through tough hide with a dull blade. Damaged armour no longer protects you, damaged pants hinders movement.)
-It gives the abilities like Ashkin Eluder much more purpose to all classes, especially DoL and DoH classes.

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