Hiya!
I voted for the first one:
Yes. Bad things can happen to players, and the game goes on.
IMNSHO, if a player can't sit there and just enjoy what's going on at the table...or, to put it another way...if the player absolutely
must be able to have his/her PC do something "all the time or there's no point in showing up"...well, such a player can just not come back to my game.
I've played (mostly DM, but I'm talking about one of the rare occasions I get to play as a Player) in games where I've been "sidelined" for most of the session. Didn't bother me one lick. I don't have to be "doing something" to be enjoying the session.
For me, I enjoy seeing what happens. Is it better if I get to have input as a PC? Sure! But if I get "sidelined" for most of a battle, then an extra 45 minutes as the other players struggle to survive...that's cool too.

I enjoy watching movies and hearing people tell stories. Sitting at a game table waiting for my PC to be resurrected/rescued/whatever is part of the story.
I really don't get the "me me me! me! Me! MEEEE!!!!!" mindset of a lot of people nowadays. It's like, if they aren't the center of attention, or if people don't directly include them or acknowledge whatever they just did...then they feel "left out", "shunned", "picked on", "ignored" or any other number of things that all boil down to a sense of self-importance. As if their input
must be recognized at all times by their peers or people around them. ...it's.... ...odd. I don't get it. Probably because I'm an old fart and grew up without the internet, cell phones, facebook, "participation awards", and where I played team-sports where we kept score and wanted to win...but still had fun even if we got our asses handed to us.
Must be a young/old thing. *shrug*
^_^
Paul L. Ming