You legit just suggested perma death in an mmo? No, the end. This is such a bad idea on so many surface level obvious ways it isn't even worth responding to almost. There are mmo's that have this, and they are beyond niche with extremely tiny player bases. There is a lot of reasons for that.

If SE wants "harder content" all they need to do is add optional modes for some content that force the minimum I level while maybe also adding extra or harder mechanics. Which they wont, because they tried harder content in Endwalker and no one played it.