Lucky Day makes an excellent gesture of topic progression so i'll give it a try.
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It seems we are applying real-life theology to death in games as indeed in our own lives there are only two states (a) life or (b) death.
Many modern games seem to rely on this realism and yet IMHO older games contained more of that most important of gaming elements - "fantasy" which opens up other avenues of death or dying within the main storyline of a game.
Somewhere in between 'alive' and 'dead' is a grey fantasy area of semi-dead, undead, spirits, wraiths, ghosts etc' and although there were/are games with vampire hero's or werewolf types as the main player character, the scenario's where a hero player dies and then continues after death say as a ghost are few.
For example, a hero killed butchered or poisoned by an unknown assassin could in theory (eg: magically kissed by their guardian angel) continue within a storyline as a spirit/ghost to seek out his killer, maybe having to find a magical way to come back to real life or even then to finally die real after a bitter-sweet revenge.
Obviously, faeries, nymphs, dryads, angels, and many other fantasy types fall into this unreal or 'other-life' fantasy slot.
I't sometimes nice to get away from the traditional death method, fantasy has more branching possibilities than realism within death systems when related to the main hero player character.