Wanted to hear what others think about the 'infinite lives system' of AA

I think what makes AA so an amazing game is that when I play the game, I really feel like a person on a real adventure. I've played quite many games but I've never felt this strong adventurous mood in any other games: I almost always enjoyed the fighting or gaining levels rather than exploring things.
But I think it's not that much challenging compared to the whole exciting experience it gives. The problem is that when you die, you only lose some coins, that's all. I guess in the old DOS version your items get spread all over the place but now you can handle that in the option menu.
Today I went through the original Jugurtha quest with a rogue and I killed Jugurtha without a problem! I just simply rushed and rushed again. One might say it's lame but it's not me but the game is lame and I'm just using it. This implies that no matter how one makes a difficult and challenging map, you can just simply keep trying without that much thinking and still win the game. I think it's not good. This sends a signal to the players that they don't need to use potions or be nervous when the danger is near. You might say players can ignore it, but when you die for some reason you will realize either the fact that you didn't prepare that much since dying is nothing, or that you still feel relieved since dying is nothing.
So then making a death a real punishment would be OK? Here is another problem. I'm quite afraid that if we make being killed too harsh, then players would be more focused on gaining levels and becoming too much cautious, ultimately losing the adventurous mood of this game. That would be fatal, no kidding. Actually I think the reason this game feels so adventurous is that you have infinite lives with little disadvantage of being killed compared to any other rpg games. So you can behave more boldy and try to search every possible spots you can.
My little thinking is that still a bit more punishment is needed. I mean, at least death should be more frightening than being hit by an acid ball, you know! The punishment should not hinder the crave for adventure but also be effective in not making players lame anymore. I think this is why the makers of this game let all of your items get spread around when you die but gave you infinite lives and a choice to do the level again. Quite clever, should I have to say.
My experience of this game is way too short so I just want to hear others
