I'm kind of a fan of DCC (mostly for the art and the adventure design, less for the rules, TBH), but I must confess that I too, still, struggle with funnels.
It's not that I have a problem with my characters dying; I'm usually the first one to throw even an experienced character under the bus for some more or less dramatically appropriate reason. There's always a new character idea just as attractive waiting around the corner.
I don't have a problem with random chargen, either; sometimes, it's frustrating because you get something boring, but most of the time, it's inspiring.
What I do have a problem with it is something I realized recently when running that adventure with the space jellyfish starship that the characters are supposed to enter in search for treasure (I can't remember the name - Danger from the Air or something along the lines):
So, the most crazy and adventurous villagers enter the jellyfish. Fine. Then, they start dying ... well, okay. That's what happens. But, as in most funnels, the only way to really continue is if the other characters act like psychopaths who don't really care that people they have known their whole lives - in one case, a husband - just died in a gruesome manner. They're not supposed to snap, to kneel at their side sobbing uncontrollably, or to just GET THE HELL OUT OF THERE ... because that what surely put an end to the adventure. Also, playing up the tragedy would go against the fun spirit of a funnel. I get it. It's just that I really, really can't get into playing that person that would loot their dead's husband body and then continue on, looking for more treausure. And it was obviously the same for my players: They were stumped at how to roleplay this, and the whole adventure devolved into "Well, I guess we're supposed to continue, so that's what we'll do", but in the end, we just broke it off.
I think the concept of the funnel could work for me if it is quite clear that the characters have no other choice than to continue, trying to stay alive - in a true horror-movie setup. But continuing out of curiosity or for treasure after losing a bunch of friends or at the very least acquaintances? No, I really don't want to keep playing that kind of people ...