Yes. Though "understand" is the wrong word to use here... "agree to" and "prefer" are better choices.So, basically, if the group understands death-lite you can use it, and if they do not understand death-lite you should not.
I have no idea what you mean.This is different from SoD how?
Death-lite means facing the game's challenges using the same character (or, implicitly, the character of the players choosing).
Death-standard (hey, I coined a new term) means creating a new character each time a character fails a certain kind of in-game challenge.
Both approaches have advantages. Both have drawbacks. They are not, however, identical.