Been an ultimate since it first came out and never had a problem with the death system. In fact, keeping it the way it is is a great insentive to seek your ring of life, or eventually the defense cape.
All the factors you mentioned, game world reboot, unexpected game shut down (never heard of that happening), and item deletion are basically unheard of, or the player has ample warning leading death to be their own fault. Internet disruption is also rare, and easily solvable by using a ring of life. Had mine on since I could get it, and it's well worth the investment.
I see no reason to make deaths any different as none of the reasons stated are convincing.
Moo
13-Dec-2021 23:00:50