Personally, I'd never do the 1-and-done permadeath runs, but I'd at least consider the limited-deaths variation if a group of friends wanted to do it. But, overall, I find the idea unnecessarily stressful for a videogame. One mistake here, some bad RNG there, and all of the sudden however many hours of fighting, gathering, farming, and building are gone.

I prefer to just play cautiously without a specific cap. I think my first playthrough with friends was about 8 deaths, about half of which were reckless corpse runs to grab my stuff. Though, if I had the added stress of limited respawns, I'd probably screw up and lose long before making it to the mountains.

But I also don't have 1k+ hours in the game, so I could see people who have played longer than me and have already built everything that could possibly interest them wanting more challenges/risks.