- As demonstrated in Video - Why Wildermyth's Best Story Wasn't Written By Anyone, permanence (e.g. in the form of permadeath) is a critical element for player-driven stories in video games. People attach to characters a lot more if they have to make critical choices and endure the consequences as the game unfolds.
Permadeath isn't fun. Permanent choices are. The stakes being higher makes for a more tense and compelling experience for sure, but the moment to moment dynamics that emerge from permanence is what makes the experience meaningful.
- This is why Pokemon Nuzlockes are so popular and the best pokemon stories as of late are told through them (look at Jaiden Animations, Nuzlocke monotype challenges on youtube and pkChal on Twitch)