rabbidrabbit: It is all a question of balance.
The extream case I have seen tried by AW was a one life to live Arena. You got 1 life per day. "Sounds like a neet idea right" closer to real life, put the pucker factor into the fight. Well here is what realy happend.
Everyone discovered the same thing, because living out wieged the risk of fighting, no one would engange unless they have a big advantage. Hence the hole time was spent just chasing people and never fighting. No fights everone got board, next thing no one is even trying the arena.
So to make a game fun, you realy have to have the need to engage out wiegh the risk of dieing in the majority of cases.
This is acctualy more realisitic if you view it from a slightly different perspective. In real war the need to accomplish the mission outwieghed the need to live. We do not have anything that realy promotes the need to accomplish a mission, hence we lower the penalty for death, there by making the engagement more important then the death.
HiTech