S
Sunseeker
Guest
That's why new characters should come in at level 1. You can either stick out the resurrection penalty for a few sessions, or you can spend several sessions getting your new character up to that same level.
I'd rather deal with houseruled experience and leveling than deal with houseruled death penalties. At least with the former I know I'll be earning it by participating at the table, even if only at level 1. With the latter I have only to guess at when the DM will let me "get better". So if you're offering me the choice of two mechanical penalties, I'll take the one which is only a variation of what is explicitly stated in the books, as opposed to the one that is entirely made up.
Beyond that, by saying "you have to play gimpy or you have to start as little timmy" isn't a gameworld event that generates good story. It's a punishment for the player, not the character in order for strongarm them into doing what the DM wants.
One of the biggest things I like about a game is knowing how it works. Now, if your homebrewed mechanical penalties are crystal clear and not reliant on DM whimsy, okay I'll probably play along. Especially if they're interesting and help generate good story. But overall I HUGELY dislike mechanical "mystery" and "surprises" in mechanical forms. If I don't know how something works, I'm likely to just not mess with it.