As painful as they were, they were a REAL deterrent to not mess up and be on top of your game because it could be a long night if it went south.
I remember raiding in Dragon Necropolis and wiping far in to the zone. Two of our guild's monks worked tirelessly to obtain our corpses back. I remember passing out on my keyboard and one of my guild friends from Australia calling me on my mobile to wake me up so I could consent him to pull it out.
Pantheon seems to be a push to bring this sort of challenge back.
Deterrents are key in an MMO imo. Risk vs Reward. Its something sorely lacking in the modern MMO.
I remember back in the days of Ultima Online, where a player could kill you and loot your body, they literally were able to take the contents of your backpack, your hard earned collected resources, even your armour and weapons. Harsh though that sounds it did mean that a trip through the lands, running from one town to another was a risk fraught with danger. Going out of town , into the wilds, on a journey, actually FELT dangerous.