Yep, sometimes characters die. Sometimes permanent thing, sometimes they come back, in one way or another.
In plot heavy games I am careful to let characters die in some random combats or stuff like that. In games, where raising the death is possible, I don't fudge, but instead let party have possiblity to get their dead party-members back, if they so desire. Then there are some more relevant plot events where permanent deaths/other permanent effects are possibility where I stay neutral and let player's actions and dice to decide how it goes.
In some dungeon-crawls I've run, if character dies, just creating new one, is more likely course, unless party has access to raise dead spells.
In solo games, I never kill character permanently, unless it's campaing ending battle or something.
I am currently playing in one game character who is sort of immortal, though no idea how far it goes. She has died 5 times, and came back each time, with some minor physical changes, leaving her old body behind. And this "reincarnation" takes place without equipment within mile or so of place of death, but random otherwise. Those dicarded bodies can become undead apprently.
This creeps me out, and I am more afraid for character death than ever before. It feels more sinister somehow. We are playing modified Shackled City campaing, so I wonder if this would go together into some element in it. No spoilers, but just wondering.