I think this adds a great extra challenge to the combat and forces you to prepare for a fight (potions/resurrect scroll/...) and to think and adapt while you are in the fight itself.
All that you wrote about is pointless because most of those repeating insta-deaths occur not because of bad decisions, but because of stupid formations AI that gets characters into hazardous surfaces that cannot removed, namely lava. This needs to be fixed by moving ressurection spot out of the hazardous surfaces.