I'm an mmo vet, and dying was never a big deal. But dying in the middle of a class quest in this game greatly reduces the fun factor for me, I think due to the heavy use of story. Plus, when I finish the quest the dialogue never reflects the fact that I failed, which makes the whole experience seem contradictory and unrealistic. "Oh thank you! I can't believe you survived that!" Uh, you were standing right next to me, lady. I died. Twice.
Wrapping a heavy story RPG into an MMO has made a great game, but it's had some strange consequences for me. I almost wish they would have reset class quest events if you die, more like some pure RPG's. That would at least make the whole dying thing seem more compatible. I don't know how they would do this in an MMO though.
I also died on my first toon while getting my ship. That was such a buzzkill that the toon actually felt "dead" to me, eventually I lost interest in playing it. I found I liked another class better anyhow, so deleted him to recycle the name.
Anyone else have any kind of experience like this?