just started the game three days ago and I've died several times since then. It sucks to have so much of the skill points taken away..and before the server crash tonight I was killed by a bear that started off-screen aggro on me..no where near a river to run to and killed me. Then as I tried to get my body back...a boar killed me.
So now I have barely no skills and a decent sized little place carved out with only like 20% of the skills required to use my stuff. I don't think it's very fair to take THAT much from a person after they spend hours upon hours at the game.
In essence..this game rewards people who clear-cut grind and not those who explore. Looking for seeds is what got me killed!