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I dont particularly like a "permanent death" but there should definitely be skill lose upon resurrection.
You are oldfashioned. Skill/stat loss is the worst OSI implementation next to Trammel. It did not solve pking problem at all and overall it made no sense.
Permadeath would greatly affect the course of the shard, however, it must be noted that I in no case mean that we should add permadeath with current pvp system as it would just ruin everything. Instead, PvP should be changed and stuff like bleeding, backstabbing should be added. Plus players should be able to run intown businesses such as the banks, tailor and other shops, taverns etc. This way keeping your character alive would not only be important as not to lose him in general, but also keping the private businees with it.
Well, there are many many ways the gameplay with permadeath AND (note that permadeath is shit without system changes) PvP/combat/environment/economy fixes, would change.
Imagine being able to hire NPCs to run your business and protection racket offer from myself or I will just rob ur shop and u will lose clients and funds.
Think progressive guys. Or go play Hybrid or IPY2 or anyother typical UO shard with the gameplay which has never been changed since the release of the game.
AS IM typing Im having facebook convo with LB and we are talking about possible permadeath issue, protection racket, private busines ownership etc features in his new UO inspired RPG project. Hope I can persuade him into doing it.