A lot of insightful posts on this thread. It's really variable given the situation, but all things being equal, I went with few players would accept those terms. Many issues (genre expectations, possible loss of magical items, having ideas for new pcs, dislike of railroading, lack of trust on the dm, etc) contribute to why this is the case. I also think that for many players there is an implicit shaming or loss of face for both the player and the character. It’s like the fantasy warrior code "don't give in, don't submit". To die fighting impossible odds may be seen as an honorable way to go, but submission most likely means that the PC is seen as a weakling at the best, a traitor to the cause at the worst. Also, submission may lead to further humiliation down the line. Because this possible disgrace can really mar a player's idea of who he is playing, fighting to the death may be seen as the only reasonable decision.
There’s only a few mitigating factors I can see helping the odds of surrender.
1) Strong trust between the player and the gm.
2) Players knowing (and having confidence in their knowledge) of how to exploit their enemies to enact escapes
3) Players not wanting to take the time to struggle through a fruitless battle
4) The pcs having something more valuable to lose by dying than their own lives, something that outweighs the loss of face and the loss of resources implicit in surrendering
5) As mentioned by previous posters, the trustworthiness of the force they would surrender to and the terms of the surrender
6) Also mentioned previously by other posters, a desire of the players to be part of interesting game/story developments/opportunities and to just see where the game goes