There is no 'solution for death', that's the problem. A few months back I started to write a lengthy diatribe about death and the impacts on the game, mainly in response to my experiences in Bioshock (why die and be reborn in the chambers instead of restarting from a save point?), but as I wrote the message, I realized that ALL games are like that to some extent.
The only thing they can do to relate death is to punish the gamer by making them re-do a lengthy process to return to the point prior to death.
I think Obonicus put it perfectly. The only currency is time.
The job of the game is to immerse the gamer in a situation so they don't want to die, regardless of the experience of death. To form a sense of bond with their character that loading saved files or restarting will break.
I've mentioned before, I'm not a big RPG fan, Fable was the only one I had for my Xbox and it took me quite a while to figure out that I was playing a game. A game that had a defined set of rules and consequences and that dying wasn't really that bad of a thing. I didn't need to be as overly careful as I was, because death wasn't some horrible situation you couldn't recover from.