You see, all it looks like this decision has resulted in is eliminating the tedious journey back to the temple. And if someone gets gibbed (permanently killed), for most players it simply means it's time to reload.
Yes, some people may be inconvenienced by it, but since (as you stated) all it really does is eliminate the need to waste time running back to a temple, it doesn't necessarily add all that much to the game if you stop and think about it. The only situation where it would make an impact is if you don't have access to a temple (say you're stuck in a dungeon). At which point, it becomes exceptionally easy for a game player to put themselves in a situation that becomes unwinnable. Especially if they are an inexperienced game player and have a bad habit of overwriting saved games!
In the end, I think it results in less frustrated gamers, as I'm guessing only a small minority will consider it to truly be a detriment.