I'm A Banana
Potassium-Rich
I'm not sure how to explain it any more clearly than this. I do know that I've had much, much more fun in RP sessions in which I knew death would only come when it would advance the storyline than I've had in sessions where death was at the whim of the dice.
I think I have it both ways. ^_^
Using the CR-ECL system, there is rarely a large danger of killing the PC's in a battle. Most of the time, they can handle an encounter of their CR and come away healthy for it.
So most of my encounters have PC's fighting of-CR creatures. This means that I can roll in the open and not really threaten them. Usually, one charater might get knocked unconcious by the end of the day...no biggie, since they can be healed up to full in a few round's time (Yay for white mages!

Thus, the PC's almost never get killed by "the mooks" so to speak.
But then I have my "boss level" encounteres that usually are 3-4 CR points above the player's level. These, are dangerous. And they're significant. And I still pretty much don't fudge. These are the battles that success or failure hinges on, for the most part.
So if a character gets killed here, they've died at the hands of true wickedness, not some random trap. They still feel that they've done something important, and their death increases the fear of their adversary.
I run very plot-driven adventures...I never TPK, and I've never had more than one character die at once...the plot really isn't weakened much by it, if most of the characters are preserved.
If they do fail, it is the death of a real character, and the world reacts to it. If they flee or are killed, their death has an effect on the world....the Dark Lord rises after all, and their *new* characters have to deal with the effects on their personal lives.
I demand fleshed-out characters...death is never trivial. But it is always in force.
That said, I do have one player who seems to enjoy creating new characters so much that he'll shout for joy if he dies......so I'm more dangerous with his character.

There is no correct way to do it, really. It very much depends on the campaign and the group. Right now, I'm running a super-cinematic campaign where I have told the players that they probably won't die. After that, death may be a common thing...it varies.
