Maybe that's okay. It would teach a character who might be dying from rushing into battle too quickly to stop and try to plan out some strategy. Or at least wait until everyone can catch up.
Another thought I had was to constantly raise the price of Raise Dead. Maybe by a factor of how many times they died. This instead of XP loss. So one accidental death would not penalize you as much as the character who has been rezzed 10 times so is now paying ten times the cost. That might convince his friends not to rez him anymore.
"I've seen the 'Exorcist' about a hundred and sixty-seven times, and it keeps getting funnier, every time I see it!”