A cure for surplus.... kinda..

[Abriael]

Ya, I know. Like I said it was my fault for not looking. Also, I know, but theirs games that really hurt you if you die like, Demon souls. Dieing puts tension in a tight spot. Makes you more alert and careful, putting strategies into your next move/attack. That's what I like about death penalties. Puts you on the edge of your seat, type of deal.

Demon's souls isn't appreciatd for it's death penalties. It's appreciated mainly because the fights are actually challenging in themselves. Also, demon's souls isn't a subscription based game where frustration is something to avoid (frustration -> ragequitting -> less money for the developer). Finally it's a niche game, that appeals only to a very precise kind of hardcore gamer. On the other end FFXIV has been publicized from the very start as casual-friendly.

The "demon's souls" (at least for death penalties) of MMORPGs already exists. It's called Darkfall Online, and it failed harder than FFXIV will ever manage.

The way to make people alert and careful is to give them something to fight that requires them to be alert and careful to be defeated, not to make them waste gaming time if for whatever reason they die (or because someone else makes them die, which happens quite often).