Lyxen
Great Old One
It's a great idea, just a bit complicated for me as it tries to cover a lot of cases.
Just FYI, in both our major LARP worlds, we have implemented reasons for combatants not to kill each other, because it would suck if you could be killed in the first few minutes of a multi-day game, and resurrection should not be cheapened. So in one world (The High Kingdom, sue us, we were young when we invented it in 1986
), killing someone invokes the DeathMadness, which is a force that possesses who ever actually kills and marks him visibly, so the killer becomes a pariah and is hunted by a special "life clergy". So most killers are actually NPCs, although we've had some players doing it towards the end of games, which is frowned upon except in rare cases. Anyway, the people of the world had basically developed non-lethal combat techniques and spells, although there are still a few lethal ones if needed.
In the other world (Called "Mist", sue us again
), it's not that you do not die, but it's a world where religion is extremely strong, and the goddesses watch for their worshippers, reincarnating them if dead. It's an interesting view, since it allows a lot of shenanigans as to whether people are really protected by their goddess, they need to maintain places of worship, make sacrifices, defend their temples, etc. And it also allows for a much deadlier game overall, since towards the ends of the game, it is quite frequent that the protection of the various goddesses is withdrawn from the game area, which results in a scramble towards the exit points like the Dawn Trails or towards the few "Misters" who can navigate the mists where the goddesses have no influence.
Anyhoooo, I ran a few tabletop games in these worlds as well as LARP, so that we could check other aspects of the worlds, and it was OK, but the mechanism that you propose might be useful for that. I just feel that a combination of setting and rules is usually the best to solve that kind of problem.
Just FYI, in both our major LARP worlds, we have implemented reasons for combatants not to kill each other, because it would suck if you could be killed in the first few minutes of a multi-day game, and resurrection should not be cheapened. So in one world (The High Kingdom, sue us, we were young when we invented it in 1986

In the other world (Called "Mist", sue us again

Anyhoooo, I ran a few tabletop games in these worlds as well as LARP, so that we could check other aspects of the worlds, and it was OK, but the mechanism that you propose might be useful for that. I just feel that a combination of setting and rules is usually the best to solve that kind of problem.