I believe the current system is rather too harsh for player death...Playing and grinding for 4 months then dying and loosing over half of your Stats\Skills\LP sure feels like a kick in the nuts right now.
Back in the legacy era, new chars would throw that slider to full change to gain max LP, then once they reached a level they considered acceptable, they would switch that to full tradition and go explore the world and play the game. Dying on full trad wasn't that bad at all, so people were much less scared to go out and have some player interactions. + you could die on full trad, inherit then go back to full change until you were ready to go play again. Not to mention you could eat infinite amount of food back then, making recovering from death a rather manageable thing.
With the removal of the slider system, not only are we stuck with a slower learn speed, but then when we die we still lose 55% of our LP minimum, if we recover body and skull etc. We can't go back to 'catch-up mode' by going back to full change for more LP. AND we also cant eat food like we used to because of satiation + hunger mechanics
Losing 20% of stats\skill\LP without body or skull, 15% with skull or body, or 10% if you manage to get both back seems like it would encourage a lot of folks to move around and interact again.
This way dying still has consequences, but it also doesn't mean you will never return to your former glory as others have put it.