People who fuck up in pvp fights and get KOd are back on their feet by the next day. They just get given new gear and heal their wounds and its like nothing even happened. Losing has become completely inconsequential. It sucks when you know there are people with better stats than you who have gotten KOd so many times yet they are still ahead because there is no consequences anymore.
I wouldnt even be opposed to perma death being removed from the game. It doesn't serve a purpose now. All the legit ways to perma die has been removed from the game and now the only things left are lame shit like client crashes or noobs who dont understand how drowning or porting home works.
If theres no consequences to fucking up then animals arent scary any more. Mining isnt scary. PvP is anticlimactic and dull. If failing isnt punishing then success isnt rewarding.