No, it does not affect any of the early T1 perks.Hyperbole is ineffective if it can be fact-checked that easily.
Learn your own game. Or play it. Or I don't know, don't brush off feedback from your users. Ironically you are using "hyperbole" as Hyperbole to label user feedback as not meaningful.
This new system for death is terrible. I have already had multiple people leave the server I run over it.
It does remove huge amounts of progress, especially prior to level 20. Sure it cannot be reduced below 1, but it sure feels like crap to have everything pinned down to one. You get worse quest rewards, craft lower quality gear, do less damage, have access to lower quality food, literally everything you have invested into gets hit. That is not hyperbole, that is the actual mechanic of the game.
Do not dismiss people over if they are technically correct or not. That is not how user feedback works with a new product. Your users are not always expected to have full insight into a system and nit picking to dismiss misses the issue that there are so many people unhappy with the game.
Further, if you are more than level 5 and less than level 20, you can easily, and for some players often, end up with all of your stats pinned down at 1 and only have access the the stats you had from just after starting the game.
I had one player curse me out over it and said to disable it before leaving the server. I had another who died a bunch of times and said that they would never not have a death penalty and this was not fun and then leave. I can keep on listing these, I had it happen 4 times today... And that is just people who said something!
This is not even a good mechanic, it encourages players to play safe and avoid risks as much as possible. I know I just cancel a quest if it is in a building I am not familiar with. No way I am spending 1 RL hour of my time outside of work with my stats penned down to 1... By the time I am going to be willing to go into there and explore, the risk will be trivial. This to me ruins some of the coolest parts of the game the have been developed over the past couple of years. The maze POIs are amazing and I am staying the hell away from them because the risk/reward is not at all balanced.
There are so many great things about this patch and right now it feels like most of it is hiding behind a few minor issues(like the death debuff). Please, don't pick this hill to die on.
At the very least this needs to be easily user configurable. It NEEDS to be an option when setting up a game and it needs to be in the server config file as an option. If you are not going to budge on if this is a worthy feature, then at least give us the option to play the way we want.