In Halo and other contemporary FPSes, death is literally just an inconvenience. You don't even have to spend 5000gp to be raised, you come back 10-30 seconds later exactly as you were (maybe missing a few of your guns, but that's it). Earlier games made you reload a save, but often you could save anywhere you wanted, so again there was no huge issue. Nor is there any levelling up: Gordon Freeman in Half-Life is Gordon Freeman, regardless of whether you've been playing 10 minutes or 10 hours, so there is no huge investment (of time and/or emotion) that can be lost. Under these circumstances, death is no barrier to fun.
I am all for this sort of death. In my last campaign, any character who died could, if the player wanted, just come back after the fight. They would be beaten up and bloodied (-1 hp), but alive. They were just "knocked out"/"mostly dead" instead of all dead, but people were too busy to check at the time.
It worked very well. At high levels, resurrection magic makes death a bit of a joke so it didn't affect game balance much. Further, in terms of risk and reward, everyone knows when you've been pwned. Just because you can get up afterwards doesn't erase the fact that you got knocked down. Thus there is exactly the same sort of excitement as associated with the risk of death (which is entirely illusory anyway, since we're talking about imaginary people in an imaginary world).