Yes, that's exactly it
I mean, it's just good game design to permanently handicap the game player, undoubtedly rendering it frustrating for some to the point where they either conclude that they can't make the choice they want to make in the game, or just give up on the game entirely.
A more astute summary would be that the people here are just upset because rather than forcing others to play the game the way they want to play it, they are forced to play it the way others want to.
If the player is stupid, he should be handicapped. Just like killing everone in town (stupid) will handicap you. There is no actual "consequence" in your "choice" if you can just replace NPC's via a camp that you carry with you.
Yes, obvious because theres no other way to die.