Cool discussion.
[MENTION=6919838]5ekyu[/MENTION]: you seem to have a rare proactive story approach to PC death. This is great. (Really!) However, I believe you are the exception. At least, from what I have read here and other forums, and in games I have played, PC death is either avoided in some fashion; or if it occurs, then the PC is just dead and swiped under the rug, and the game goes on. It is rare (again, only as it appears from personal play experience and reading on forums) that there are strong story elements linked to PC (or NPC) death. It's not never heard of, just rare. D&D in particular does not suggest that as a default assumption. In many adventures, the authors specifically suggest to have back-up characters in case of PC death. A bit like [MENTION=177]Umbran[/MENTION], I'm not arguing that this is good or bad; just that the default, and IMO most common, experience in many RPG's regarding death, is to have the PC stop being part of the story, and a new PC being incorportated instead. PC-story #1 stops, and PC-story #2 starts.
To those that commented that this is a game, not a story: while I understand that gaming aspect of it all, as opposed to writing book, playing a RPG is not equivalent to playing a board game either. Story, achieved notably through role-playing, is central to such a game. At least, in my experience, it is. I've stopped playing to kill-loot-repeat quite a while ago. We're building something around storytelling, within the structure of a game.
To the suggestion to have only party stories, and no PC-specific stories, in a campaign: that's one way to handle it. I like to have PC-stories also, both as a player and as a DM. It's obviously challenging with respect to PC death - thus the inception of this thread
All that said, it's great to see the varying experiences shared herein. Good stuff.