Thanks for replying!
However, I'm not sure I like this.
Let's picture the following scenario: in the climactic fight against the BBEG, Zolkar the Wizard bites the dust. His comrades carry the day, though, so he's rather quickly raised.
Now, this concludes this adventure and begins the next. Which starts off with a lot of talking, easily covering two full sessions (say). None of this constitutes adventuring or danger. There are no bugbears to fight and there are no princesses to skill challenge.
Now, as the DM I know this beforehand. But Zoltar's player don't. from his perspective, he's at -1 for a very long time, where combat might break out at a moment's notice.
It doesn't, so having the death penalty doesn't make any difference. But it sure won't feel that way for Zoltar.
Instead, he might be inclined to go down to the local pub house and bash some heads. (Or the city cemetary, or it's local branch of the Evil Death Temple, or whatever)
That is, cause those three milestones to happen sooner or later. Better that than the uncertainty.
Thoughts? Am I unreasonable? Or do you feel this makes a good argument the DM should feel free to lift any death penalties inside of the three milestones whenever appropriate? (The end of any big campaign arc could theoretically mean an unlimited amount of milestones, followed by an extended rest).