The problem with the death penalty is that, in my opinion, it prevents the player from immediately going back out again and doing better. In another post someone described that he feels useless during the time of the death penalty.
Actually, it's much more painful to lose a bonus at death you've built up over time.
It was similar with the wellness system. You had to work your way up again by eating the right food.
The current DP prevents nothing with an extra attribute point - but even if we are talking about the A17.0 DP, you had to die multiple times within a period to get the max penalty and even if we are talking about the max stacked penalty, it roughly took away half of your perk levels which,
essentially, ARE bonuses you already got earlier in the game. And even if you lose half of them, that hardly prevents you from doing better. The penalty seems harshest on crafting - but even that is mostly circumvented by just retaining supplies.
Wellness was severely flawed, but let's suppose again that death didn't reset your status in A16 and wasn't beneficial - let's say it was neutral except that it was reducing your wellness to a min 130 w/ perks. So, even then, why would anyone try to avoid death?
Don't tell me max stamina, because stamina was virtually infinite in A16 (not that it isn't now - investing on agility hardly makes a difference with this regen). Other than visually enjoying a larger number, it hardly made any difference.
Max life? Let's suppose the player played on "insane" - that extra max life would make him endure 2-3 more hits before dying. So essentially the argument is this ---> mustn't die because max life will be decreased ---> because if max life is decreased, it's easier to die ---> and on death, max life will be decreased! ---> wouldn't want that because it makes it easier to die! Brilliant. And it's not like min life made much difference.
In the end, let's not bs each other here. The DP is too, something you lose temporarily, that you have built throughout the game. Seeing it as a penalty to a "natural player state" is only the way some people prefer to see it. And what hurts most is obvious - by the reactions. Unfortunately in order for something to have impact it has to "hurt" - no other way around it. I totally respect the preference to play without impact or consequences and I am sure there will be options about the DP, but let's not sugarcoat things or delude ourselves.