Framing permadeath in this way allows players to view death as an inconvenience rather than a failure without robbing them of the satisfaction of incremental progression.

Source: https://gamerant.com/hades-breath-of-the-wild-skyrim-roguelike-games-influential/

With enough materials, players should be able to brave dangerous situations in permadeath mode without putting themselves at risk for too long.

Source: https://gamerant.com/the-last-of-us-part-1-tips-surviving-permadeath-mode/

With the added risk of permadeath, Blizzard is looking into ways to prevent these cheap deaths from happening, though a true fix isn't arriving soon.

Source: https://gamerant.com/diablo-4-eternal-realm-map-renown-reset-altars-of-lilith-changes/