I was thinking of two things that would add to re-incarnation.
Deeds
Over the course of a hearthlings life, certain deeds could be unlocked. These could give slight bonuses, they have a chance to pass on after death.
Traits
When one inherits a character, that characters past deeds have a chance to come with the new character. These would be called traits.
You might have a curiosity trait that gives a boost to perception, and exploration. An ingenious trait that boosts intelligence.
These would be permenent on the character, and would pass on.
This way, death does have advantages. Blaze might get a woodsman trait, and get a bonus to exploration, and surival. He'd get this through some means of achivement, maybe from killing so many animals, roasting x ammount of meat, and finding so many herbs, over the course of his life.