As I can imagine their will be quite a few ex/old/current Halo players trying out Destiny, I reckon having a permanent death of your character is slightly excessive. Especially when Destiny is being built up as a social experience rather than a hardcore RPG, in that respect does it really matter if you just respawn?
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I say yes. Simply because Destiny is going to be a social experience doesn't mean that respawn must be instant. If anything that would ruin it, because so much of the strategy will be diminished if you can jump right back into the action after you die. I would be impressed if dying was a big deal in this game. So that people have more motivation to help out other players in their group, this would fuel cooperation if your teammate dying meant that they would be out of action for an extended amount of time. Problem would be if people were often influenced into sitting around and waiting for their revived companion to trek their way back to the group. I hope that dying gives people enough motivation to want to help out their social companions as much as possible, while not taking away the ability to run and gun a little bit. Dying as a legitimate consequence, that sends you pretty far back, sounds wicked. Personally I'm for the Soul Collection/Re-manifestation category.