Very interesting takes and experiences from people so far!
As a small update; I decided to attempt to implement instakill mechanics into my system through a condition called Off-Guard.
Essentially, if an entity (creature) is not actively guarding its space, or is unconscious, they are Off-Guard. The condition grants incoming checks versus the entity some bonuses, and if they take damage in a single turn that is equal to or greater than half their maximum HP, they instantly die. When they take damage, or are otherwise alterted to danger, they are no longer Off-Guard at the end of the turn.
For context, the system has HP values that are typically around 10 - 60 for most entities, except for weak minions and bosses. Attacks typically deal on average ~7 damage without any buffs, and so PCs can reasonably deal up to ~30 damage in a single turn if they invest resources into the attacks.
The design intent for the instakill rules is to enable assassinations, but without it cheesing tough opponents. With the Off-Guard condition, an assassin PC could very reasonably assassinate most average entities such as 30-40 HP guards and 10-20 HP bandits, without being able to nova down a boss with 100+ HP.