The main problems with death seems to be the feeling of helplessness that comes along with it. While there are multiple ways to be resurrected, unless you own your own revive item you will be dependent on others to bring you back to life. Meanwhile there is nothing much one can do while dead. I know Azull is working on some things to make death more interesting/allow people to revive on their own, but from what I understood Gateway has priority.
This problem is only aggravated by the way death works. You are bound to a remote corner on the map, so it is unlikely you will run into many random passer by's, people can't PM you unless they have you on your friends list or you send them a PM first, the mood panel is prohibitively expensive as you gain only one AP per day, your movement is extremely limited and even if you move you'll probably be send back within half an hour. Most of them minor nuisance on their own, but they add up to an almost complete isolation within the game, forcing the player to take things almost completely to the forums.
For example a Death anchor at the GoE would already make it a lot easier for the dead to make contact with the living (and it makes sense, as the dead have been brought there to plea for their case since times immemorial). Furthermore I'd love to see the AP cost for the mood panel removed as too often something happens I'd love to comment on, but which doesn't really warrant a forum post, yet am unable to because of AP.
As for killing, there should always be a way to prevent being killed. Sanctuaries should be absolutely safe, and even outside those there should be some way to stop the killer, even if it takes some effort. More than once I've heard the dead say something along the lines of "it doesn't atter, because I'll be killed again anyway."