Lol, This seems like a cool concept, until you get to level 90, then die... I would be SO angry...
I mean If u die in an instance, ur [Removed for Content], all u would end up with is a server with harly any ppl on it, cuz once u die, ur gone. No one would do any raiding ( which is basically all the end game content has to offer)
No one would ever risk doing anything hard, you may say u would now, but i doubt it.
There would need to be some very different mechanics to accomodate, maybe make it so theres no limit on how many players for an encounter (like 12 ppl can get credit for a heroic) or something, Iuno...
Its cool and hard core, but only if u plan on playing the game to level 30.