On a completely unrelated note to the conversations going on here... really completely totally not related in any way...
Everyone here should try THIS GAME.
Thanks for posting this! It does have something to do with permadeath. It helps reinforce the one chance in that you really only have a single chance to get it right. It makes the message the game presented all the more hard-hitting and solid. I'm sure a lot of player tried to refresh the page only to realize they do only have one chance, not like other games where you can retry as much as you want. They really used permadeath to reinforce the story greatly.
This was a very fun challenge for me since I had pretty much mastered the game at that point. However, I did get disheartened with it after I lost 3 of my strongest party of 6 at one time
That's also an interesting point. Because you had already mastered the game, you would be slightly bored of the same old stuff. When you took on the Nuzlocke challenge it made everything more intense and exciting. This possibly shows how something similar to permadeath can extend the game play as well as keep expert players interested.
I think if you can achieve a really strong balance of excitement between normal and permadeath modes they can really strengthen (and lengthen) the game.