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.

Edit - nevermind, stupid idea. If the player lost all their items they'd most likely just load up an earlier save.