Insight into the evolution of a death penalty change...
The option to bind objects was added significantly later in the development process than our initial changes to the death penalty, it's not the "hidden agenda".
The process went much closer to:
1) The XP death penalty needs to be changed, it's been broken for far too long. It needs to be replaced by something that scales properly from lowest to highest levels, doesn't cripple characters for incidental or accidental deaths, yet is noticeable enough to make people not want to die.
2) Item wear as a death penalty seems to work well in several other games, and the repair systems can be overhauled to accommodate it in DDO.
3) Items will be taking more damage. Better cut repair rates, since we don't really want this to be a huge money sink. Items will also be taking more permanent damage. Better cut the permanent damage rates.
4) Wait a second... Permanent damage is intended to remove objects from the economy. If someone binds something, it's already removed. Therefore, wouldn't it make sense to remove permanent damage from bound objects? This is good anyway, since it resolves one of the complaints I frequently see in feedback compilations.
5) If my bound objects don't take permanent damage,
I want the ability to be able to bind anything I want and grant that permanence to my favored items.
In the middle, there was also:
2a) We should have some sort of lingering debuff after death as well. Maybe 1 point of Con damage per death that lasts until you have a chance to rest?
3a) Con damage doesn't work out well, since it ended up frequently killing you immediately after you get Raised, since you got back at 10% hit points and then lost a bunch of HP due to Con loss. That's bad. How about stacking negative levels that go away when you rest?
4a) I don't like this "until rest" mechanic, since it seems to be encouraging everyone to recall out if they die. The resurrection sickness has to be a lot lighter than that, so people will "stick it out" rather than leave dungeons. Unyielding Sovereignty is a good target for a buff here.
There was also one short period when Codog misread my spec and had all items taking permanent damage each death. That was bad... Very bad.
Temporary negative levels that last for a short period of time were chosen because they're a nod to the level loss in PnP D&D. The penalties to saves vs. fear are clearly for flavor, considering how easy it is to become immune to fear.
We're not trying to force people to bind objects as a hidden agenda. It was added as an
option if you wanted to forever be safe from permanent damage. We cut permanent damage rates in half to compensate for the increased item wear, but thought it'd be nice to give you a way around permanent damage entirely. Would I be upset if nobody bound any items? Not at all, it's their choice. I'll be rendering some of my favorite items permanent though.
If you're looking for a hidden agenda, it's "Make DDO more palatable to new players, try to bring back those that left after ending a night at a lower XP total than they started at, and prevent people in the future from having similar experiences."
Death has a (monetary) cost when capped now, true, but essentially having no death penalty at cap really wasn't healthy for the game.