I guess this is why FFXI had exp LOSS on death as a near enough equivelant penalty to permadeath so that death was not quite so cheap but still wasn't a huge kick in the gut if you were unlucky.

Unfortunately though, it just made it annoying (even FFXI doesn't have EXP loss anymore for under level 50 and the amount you now lose is so much less than it used to be). And permadeath might provide an added element of challenge, but personally I think it's too much, especially with a casual-orientated game like FFXIV is.