I'm quite satisfied that I have implemented permadeath. Death is not permanent at first, you have a certain favor amount, which will be reduced each time you die, but once it has been used up (3-4), the game is over, period.
Implementing such a thing is not challenging from a technical view, the real challenge is to accept, that this feature will repel gamers from playing your game, a risky move in times of streamlining and casual games. But this game was never meant to be easy, eventually it is a roguelike(-like) in 3d.
The reason the first few deaths are not permament is, that this is a realtime, 3d game with a high risk of being surprised by some monsters. Sometimes you just have bad luck, after a near-death combat sitation, when two spiders are incoming simultaniously from two different directions. Most roguelike games are round based, in such a situation, even if it as dangerous as in a real-time situation, you have atleast the time to think about your options. In a real-time situation you have only few seconds to react and I don't want to make an action game, this is still a slower paced RPG at its core.
With permadeath in mind, there're still two issues a playtester could become frustrated. The pre-alpha version is without sound and sound will deliver very important information of creatures in your next surrounding (sound is highest prio after pre-alpha start!). The other issue is balancing. With the right equipment most creatures will not be terrible challenging, but you need to find it first. The first dungeon is generated (the generator is not part of the public version yet) and even I don't know what items are around you can find, but I hope, that there's enough interesting loot around
I will upload the public version this weekend, so stay tuned and prepare to surive.