Edit: I no longer think perm death is the problem, I think it has more to do with creatures and the inability to fight back if aggroed.
Perm death is a cool idea. However, it's a tad too harsh for such minor screw ups. For example, bumping into the wrong creature is a instant death for a newb. A thorn on a foot and leeches is also a minor thing that can easily kill a newb. Those things should not kill a player, only make them get knocked out. After a creature knocks you out, they should always walk away. Very rarely do animals eat humans in the real world. Bear attacks are highly uncommon, they almost always walk away after a human appears dead. Besides, bears don't chase humans as soon as they see them, nor do all animals.
The only ways you should permanently die is from murder and swimming. I fully understand the difficulty of the game. Yet, these minor mistakes that come with large consequences is just an annoyance for new players. Currently, players will have a bunch of different characters before they finally shine in the game, unless of course you're protected by a village.