One of my pet peeves with the current version of D&D is how fatal it can be. So many save or die options out there and potential triple-damage-digit attacks that fatalities are almost impossible to avoid.
Death isn't really a problem due to the abundance of resurrection-type spells. But that usually costs you a level.
You pretty much summed up the death situation in D&D: Death is fairly common, but also about equally as easy to fix (for PC's).
If you'd like to have less death, mechanics like Action Points, "Luck Points," Drama Dice, etc. are probably the most common ways of avoiding it (but most settings that use this, like Eberron, have resurrection magic being significantly rarer). There's the "0 hp = Unconcious" rule that doesn't go through bleeding or anything, but rather simply assumes that, given a few hours, you'll come back around. Mechanics like Reserve Points support this further.
In FFZ, the concept of "Camp" is introduced, basically being a safe zone where the PC's can rest and recuperate, even if "dead." If a TPK occurs, NPC's at the camp (such as clerics, etc.) can raise the PC's.
You might find that this supports a much more "narrative" style of game, where characters are very consistent between sessions. You may also find that you can be all that much crueler to the characters, knowing that they'll pretty much always come back from the brink. It also allows you to develop some depth to their history, their goals, and their dreams, with some reliable consistency.
Of course, you don't want to remove true risk from the game, so their failure needs to be all that more significant. Think of it more in terms of Greek tragedy: death is one of the simplest horrors that evil can inflict on the hero. If you are a heroic figure and towns keep falling to necromancer lords and vile dragons, your failure is all the more painful than your simple demise.
