True. It's kind've dumb how the player-character is essentially immortal without any consequences for "dying". Forcing dead is dead rules on the player is perhaps a bit extreme, but at the very least if some bandits kill you, they should steal your items. Your stats could even take a temporary hit due to injury.
Casual gamers wouldn't like that though.

We'll ignore the part where the vast majority of single player RPGs, have had a "no-respawn, you're dead, need to load a save to try again" playstyle for thirty years, long before any of this UTTERLY TOTALLY MORONIC "wah wah wah casuals" CRAP came into existence.
Yes, I'm somewhat tired of that word. In my defense, I've had the misfortune of spending time on the WoW General forum.
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The primary exception to the "you're dead, reload" system is the various roguelikes, which either had enforced dead-is-dead rules (Nethack, Moria, Rogue) or did the automatic respawn with penalties thing (Diablo and it's ilk).