It's not that I don't care about deaths. Any char that played the un-nerfed ao3 got to maybe 1k deaths easily, and since then I have seen the stats mean less and less.
However, this game offers no real punishment due to it being a casual game built on a platform with iffy connection at times and interruptions: mobile devices.
Face it, no matter how much content devs add on to please the hardcore masses, PL is a casual mmorpg. You can spam potions, skills, and run thru dungeons easily with a full party. The only area right now truly built to hardcore is shadow caves, and that only because mass pot spamming won't save you and mass skill spamming will kill you.

Armor deterioration would be better suited for a game that focuses more on crafting and supplies, which means that it might be viable for SL due to all the crafting supplies we are getting... White and orange supplies for repair and green to pink supplies for upgrading!
However PL is your standard overpowered-hero-kills-everything game, and higher death punishment is not necessary. The run from the start all the way to the death spot is enough, and so is the risk of losing out on drops or xp while party moves on.