Naturally how it will all end up is still left to question. Can I promise that the combat mechanism as it stands will be more challenging? Or that you, personally, will feel as threatened without the spectre of permanent death hanging over your heads? Of course not, and I'm not interested in opening up that discussion instead anyhow.
I will say that the threat offered by a permanent death mechanic is a bit overrated. Considering that it is always combined with an accessible resurrection mechanic, it's an illusion at best. It might be an illusion you prefer, but I think for most there are consequences that they are willing to endure and consequences that they are not -- usually followed by a reload. The idea, for us, is to find a consequences that is endurable without being punishing. Should the combat prove challenging enough, such consequences will be severe enough that they require dealing with -- the exact same type of dealing that one would have to do in a BG-type game where a party member dies.
Whether the combat is challenging enough, of course, will fall mostly to the likes of Georg and Yaron. Who I have confidence in, personally, as they tend to be pretty merciless. And anyone who's played my mods for ToB knows where my druthers lie.
