There is (almost) nothing fun about failure right now.
As I said before, the main problem with this mechanic is that there's just way too much of it in the game, and it has way too much power.

Larian's Biggest Oversight, what to do about it, and My personal review of BG3 EA
"74.85% of you stood with the Tieflings, and 25.15% of you sided with Minthara. Good outweighs evil, it seems."