I know this is the way the real game is meant to play, but is there any reason to turn it on (i.e., more bonus loot?)

Just the reason that that is how it works in the real game.

 

I personally have not have any major bugs that have caused trouble, but I will wait one or two patches to this game untill I will turn that permadeath on. Then I will start run to defeat those pesky Runelords and see who will survive and who will not ;-)

 

I can stand the death of important character if it was my own fault of playing poorly. But it would be irritating if it was caused by game bug. It is a story of desperate battle against visious enemy. Sometimes some heroes just die. Has enybody read any Games of Throne stuff? You know what I am talking about )