I deal with things a bit differently, but then, I'm arrogant, and if you're a whiner, there is the door...
If someone comes to me and tells me that thier PC just isn't working out, or has gotten totally trashed due to campaign events (Like the Wizard getting his skull knocked in and his INT dropped to 5), we try to work it out. In that case, the PC usually retires and the player gets to bring in a PC with equal personal gear (wealth equivelant and I purchase the gear) with the same stats as the old one, just moved around to the player's liking...
Killed in combat? Hey, no problem, same as above, just roll the stats in front of me.
Suicide because you don't like your PC and won't retire him because you'd rathe throw a fit?
Level One. Base cash.
Don't like it? There's the door, don't let it hit your drama-queening, childish whining, Dialbo Playing butt on the way out...
But I'm lucky, the players I have (six of them) are more than happy to protect the level one PC, who usually bandages those dropped to zero, or administers coup-de-grace's to those opponents who have been dropped.
But if you want to throw a fit and be a drama queen...
Go back to playing NeverWinter Nights and don't forget to look up your cheat codes, loser.