I agree that players shouldn't be able to use death tactically like a graveyard rush, but it shouldn't be a scenario where you "lost the game" either. By this logic, a player who held a hallway knowing he was doomed while his companions escaped is actually a chump because he's going to be punished for that. Essentially we're saying "Yeah sure, DnD is all ABOUT heroic action! Just don't die or you'll be punished for it."
I guess it also depends on whether you're playing a slow levelling game or a fast one. Ours is pretty slow. About 6 sessions to level but spread out over say 6-8 months, so losing even one level is a big deal.
Not really. Theres nothing to say that all heroes come from the characters home land, or even home plane at that level.