I like this idea.

Character dies? Instead of having to bring them back to life, Host/ Main Player can kick the dead character and create and add a new one. So, the game can be done as an Iron Man mode if the player(s) choose. Though a character might perma-die, the game doesn't end. The rest of the characters continue on, pressing towards the final objective in spite of the losses. It might mean there is 1 Host/ Main Player that cannot die, but everyone else can and could be replaced.
And i LOVE this roleplay potential ...
Player: "Hello Kagha, we need one of your druids to follow us."
Kagha: "Ok, you can take Druidzerg ... i dont have any use for him."
*Half hour later*
Player: "Hello Kagha, we need one of your druids to follow us."
Kagha: "What? You allready get one?! But, oke, take Druidzerg2."
*Half hour later*
Player: "Ehm ... this is kinda embarasing, but ..."
Kagha: *Sigh* ... "Please, just take that PC and say nothing."