reelo
Hero
I mean, imagine playing in a campaign where the PCs lose roughly half their combat encounters.
Players should absolutely lose half of the fights, POTENTIALLY. As the saying goes, in the OSR: "If the PCs find themselves in a "fair fight", it means their planning sucked."
Combat should ALWAYS be a last resort.
There's nothing intrinsically wrong with that, but its not the way some groups roll; in some the game is all about the PCs, and the setting is built around them. If that's going to be the case (and its very much how some people prefer) then it behooves the GM to be aware what he's crafting the game for.
Building the setting around the PCs!?! That's putting the cart before the horses! I can't imagine any of those settings being concise, or making any sense at all.