In additiin to what has been already said. This removes one of early-game challenges entirely. And it doesn't encourage players deal with challenges and not to get too way attached to their character (correct me if I'm wrong, but wasn't there even an achivement for the first death?).
Another thing to bear in mind, there are a lot of challenges which might screw the player: river on the way, nasty swamp ambush, 1st curruption if it's mana battery, poison hands or stiff muscles, undentified wand of bouncing bolt, paralasys or other matters to die instantly, altars if someone scarifices you or god gets mad on you companions that might turn on you, doom condition with all the consequences.
Finally, why don't you just tweak possibility rather than remove entirely or even make it level in-game progress and difficulty dependant. For any challenge, not just for this one.