I kind've like the idea since it reminds me of an old mmo I had originally started in. You created an "ultimate" character, and if you died without some form of protection or didn't get a raise within the next 3 minutes after death, that character was deleted. The benefits were that you obtained skills for the class you played that others don't have and you gained bonus stat points per level. This of course made the game very pay to win if you pvp'd and kept up your protections and whatnot. On the other side of this though.... I'd enjoy a system where if you made an ultimate character that is deleted when death occurs... You could treat it similarly to how PoTD is treated. Where you level and do content as far as you can. The more content you do, the higher your points, and of course that would put at risk doing content like hunt marks or world bosses.

Idk, I can't see much in terms of how you could make it beneficial but I would definitely enjoy an option just for the sake of genuinely having to care about your character and not wanting to die. I like the concept but I can't imagine the implementation.... And this may be the sadist in me, but we don't have any form of "duel" function in game so, I can't kill your character :C