Call it strange, but I find that there's two opposing forces.
One's normal. People want to stay alive, to keep telling a story without end. I managed a scholar I started back in NERO 3rd Edition all the way up to about 8 1/2 years, whereupon he ended up having his head burned out by accidentally casting himself to death. Oops. I'd obviously put a lot into that character- I loved playing him, in-game left behind a wife and 4 kids, tons of friends, been a noble, and so on.
The other one is that stories without end tend to retard other ones from developing in the first place, like old trees sucking up all the sunlight and preventing the new ones from easily growing big and strong themselves. Of course, death is a rather effective story-ender, and given the first option, it's really rare to see folks voluntarily stop playing a character. They're part of us. Unless something happens to make you hate playing them, you're going to keep doing so whenever you can. Perming a character is often the only way it happens, even though alt-itis, spirit forges, and suchlike can help keep things fresh.
If I hadn't permed, I'd never have had a reason to go play other games, including dropping by Alliance just as the game split off from International for a weekend. Wouldn't have really had the time to play another character- which getting permed ended up allowing. Ending up going back and starting a new character, and experiencing a huge chunk of the game I had no idea existed, making a ton of new friends, and getting even more out of playing for having the fresh outlook on things.
Without that risk, the danger is stagnation. Given enough gobbies, you don't die. You don't die, there's no risk. There's no risk, being that heroic type starts to ring a little hollow, since the worst thing that'll happen is an annoying visit to the Healer's Guild. The bad guys will get ganked in the end, it's a matter of time. You're not going anywhere in the meanwhile. Your story will go on. Things won't change too much. The game isn't going to get you all killed if you screw up with the BBEG.
It's sorta strange to think that in a world full of monsters, evil, and darkness I have a better chance of survival as a PC than I do in real life.

And I'm not saying that LARPs should go out there and mow down folks like wheat- that's just as bad, IMHO as making death easier to dodge than a one-legged goblin. And call it nostalgic, but I liked having limits at ur-Ashbury, knowing that the price of failure was bringing everything one step closer to an end, as inevitable as the clock ticking down. Without them? Life doesn't quite have that zest.
Right now, character #2 is at that same point- next death is "goodnight, goodbye, enjoy the dirt nap". I've had my share of folks perming around me. On the other hand, I've also been having fun seeing them playing new characters, interacting with those parts of the game world that would never have existed otherwise but for them playing it.
