Yes, that's right! I was thinking about this in the process of coming up with ideas to make permadeath a) a little more transparent and b) not so harsh on new players. While we won't see the permadeath mechanic going anywhere, we repeatedly read about ragequitting and such. I suspect new players often don't know that they have an ancestor or at least not what they can do with him exactly.
A screen explaining your possibilities after you die might help here. Maybe pimp it a little flavourwise, telling the heroic story of your life and death (achievement threads have been popping up alot lately as well) and the bright future your ancestor has ahead of him/her.
While the ancestor mechanic itself can use further improvement I think it is nearly as important to give players a "good" feeling about their death. A game over screen is a start, more options to bury your ancestor, different kinds of graves or tombs would be neat too. Feel free to discuss those.