sometimes i imagined how it would be if there was a permadeath WoW server but you'd need to completely revamp the loot system
rare mobs would need to drop 1 random blue/epic appropriate lvl item for every player in the group that tagged the rare
t1 would need to start dropping off of lvl 50+ dungeons/rares or as long chain quest rewards (aka tirions questchain)
t2 in MC
t3 in BWL
hell t4 in naxx
1-60 leveling wouldnt change much, regular questing just needs to be done more cautious (and maybe encouraged group play by increasing the gained exp with each party member instead of decreasing it) while 5man dungeons would need their item drops increased in quantity AND quality to make it worth the risk
hell, raid bosses from MC and upwards would need to drop at least 20 items at once, each one having the entire loottable from the raid (except for weapons)
add other (passive) ways of getting items, like daily quests or a point system (aka 2.4 patch which greatly increased the availability of epic items)
too much work to realize it imo and it would be a pain in the ass to build raid groups, there'd probably be only one per server, if at all
obviously the permadeath would be disabled in battlegrounds, and the server probably would have to be pve with pvp being toggled