Originally Posted by DArtagnan 
Permadeath that's not so rare as to not really exist and the mainstream audience are mutually exclusive. You either don't have it, or you live with a tiny audience.
I think you under estimate the slice of the pie that represents gamers who want something a bit more hard core then wait 15sec and instant re-spawn as a 'penalty'. If there is no risk like most MMO's out there then really what is the point?
Games like UO and EVE there is real risk for real rewards. But failure IS a option and that makes it exciting, at least IMO.
And speaking of EVE, 300K active accounts say they like, in essence, playing a spreadsheet MMO where you CAN loose most of your work. So thinking most all gamers are new school that want everything handed to them for instant gratification is in error.