Did this tread derail already by the way?
Back to King's Quest though, I'd be happy with a retry/restore option when you die and I have no problem with them modernizing the system a bit. But the most important thing to me is that there actually is the possibility of death. It's been an important part in all of Sierra's adventure games, it makes the player feel that he's constantly in danger and can't just run around willy-nilly without consequences.
My favorite game is KQ5, it has excellent puzzles, it's challenging and it's serious yet funny. Every time I play it I always save the game and get Graham killed by going to a deadly scorpion, jumping off the cliff, getting caught in the castle etc. The narrator adds so much to that game, and his comments every time you die are so funny
So yes, the possibility of death absolutely has to be in TTG's version of KQ too. If there isn't, well then I will be utterly disappointed.