... its not really a "death penalty" if you can quickly get over it or wait 30 minutes for it to go away. Its more of a "death inconvenience" in that case.
I bring this up because of rumours that Age of Conan is not living up to the hype. I guess I'm spoiled by Eve where killing someone typically causes them real loss: loss of the ship, modules, and whatever they were carrying. In some cases, the loss can amount to hours, days, even weeks of effort to replace. That's a death penalty and as a result it makes PvP that much more visceral.
An upshot of that harsh death penalty is that manufacturers have a real market for their goods as items get destroyed or lost to the enemy. In a game where you never lose any gear, does the "crafting" (ugh) system have much meaning besides being a hobby for your character?