Character death in epic circumstances is fine. Save or Die effects aren't generally limited to epic opponents, though. Especially in AD&D, you could be pushed into save or die pretty much anytime the DM wanted, from anything from a truly epic adversary, to your breakfast.
In 1e-2e though, higher level PCs hardly ever failed save or die effects. Even at moderate level, bonuses from a save-boosting item made saves pretty trivial. It was only with 3e that save-or-die became threatening to PCs above low level, IME. It's something I dislike about C&C actually, it has saves which scale with level, making PCs subject to random death any time.
Really high level 1e-2e PCs not only saved on a '2', they often had other items like rings of spell turning, amulets of life protection, and stuff granting Magic Resistance, to give further protection. They tended to become very robust.
Edit: I dislike Ear Seekers & random magic death traps though, so although there was plenty of PC death IMCs it wasn't quite as random as that. I started my main AD&D campaign at 3rd level and AIR there were 28 PC deaths in the first adventure, Irillian from White Dwarf. But by the time the PCs were ca 7th level they were only dying to ridiculous stuff like jumping into the middle of the enemy army solo.
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