So I've spent most of my holiday break coming back to Oblivion with OOO + MMM, as well as Enhanced Economy, Ren's Guard Overhaul, and several other smaller mods.
Before I installed OOO + MMM, I found it fairly easy to stay alive. Now it is, very, VERY difficult. I must have started up 8 or 9 characters since about December, and everyone of them has been killed one way or another.
Good gods, you would
loathe my mod list then. :ahhh:
Do any of you guys play with some of these really hard overhaul mods and try to stick to a Dead is Dead play style? If so, any tips?
Don't die.

As for what I do in the unlikely event of untimely demise, I write them something. In memoriam, as it were. And, well, I'll still have their journal, if I really want to get morbid about things.

Also, sometimes a new character will be somehow connected to the recently departed, and so there is a certain sense of continuation. It helps, perhaps, that I use so many peculiar mods, so that, for example, a character might start in any number of places, situations, financial states, and so forth.
To each their own, but personally I would never play any other way (than "dead is dead").