I have tried several "Ironman" modes.

1.) When you die, all is lost (char + world) - but this gets boring if you get unlucky situations in the game
2.) When you die, you lose all, but for defeating a boss you get an extra life - my favorite Ironman mode
3.) No Ironman, but you are restricted to only 2 food slots - that can be very exciting

I hope the devs will integrate something like that in the final game, maybe with some achivements when beating the game in such a mode.

and PS: i like your idea, sounds like a good compromise.