I wouldn't go for that with current server stability and combat system (fuckin lol deers slapping you a 100 times before you get a hit off). I have disconnected a bunch of times while fighting dying, perma-dying should be because of a huge danger you could have foreseen coming, e.g. fighting a bear and getting it to rage, swimming in a just too wide river, getting slapped with wounds and still going, the 2nd or 3rd cave-in, mammoths, trolls and whale hunting and shit but not because of some server dc, random massive aggro range by infinite stamina animals who club your ass then murder you.
But sometimes the wounds are punishment enough after you get your ass whooped by animals, don't need to send people back to the char creator. I'd also definitely would go for fixing those strats how to kill non rage players after you knocked them down, and getting knocked in boats and destroy the boat etc.
Also when dying it's really fucking hard to come back anywhere close to what stats you had before considering if ye eat a single sausage your satiation is at 1%.