Well, the test I did to see that it works was as follows:
1. At the intro fight with the three skeletons, kill them all, move away from them and save.
2. Reload. New enemies have spawned on top of the corpses of the original enemies.
3. Let the new enemies move prior to killing them. Move away and save.
4. Reload. With my code above, enemies spawned at the location that the last ones dies at (not on top of the original corpses).
5. Disable the Respawn toggle. Kill the enemies, save, and then reload. They should be gone.

I suppose I still need to check if consecutive saves/reloads without killing does anything, but I expect it not to. They should be spawning a creature every time since the last generation disappears upon reload (so there is only ever 1 creature spawned per original creature).