I only play SP, so maybe my input is worthless here, but I think there is value in making the OPs request an option.
Yes, drop nothing on death exists, but there is an inherent challenge and penalty in having to trek back to where you died to retrieve your things, and that disappears when the option to drop nothing is enabled. Sounds like the OP possibly likes the added challenge/penalty, but doesn't care for the side affect that can come from griefers looting someone else's bag for free when they did nothing to earn it.
There's also the new spawn near backpack option that would require that you drop the backpack. If you're all in the same area, someone could loot your backpack before you get back to it since you don't spawn on top of it. It doesn't really matter to me because I only play the game with people I know and so I don't have to worry about people doing that but I can see the value for people who play with strangers.