Favorite type of death system was original EQ (but with minor improvements)
Least favorite would be World of Warcraft
I would like to see in DtN an experience loss, gear left on corpse, Gear wear, and if the corpse evaporates after so many minutes you get full impact. If you make it back to your corpse before the timer runs out, you get limited exp loss, gear wear, and debuff timer. Other players can help recover corpses thru skills to assist. If you do not make it back in time, it gets summoned to a spirit yard where you last bound your soul, and you incur the full impact of exp loss, gear wear, and debuff duration. I do not think you should ever de-level, just go into the negative with experience.
I also think there should be an option to just take the full loss and summon your corpse to the spirit yard if you so choose. Especially if you died in an impossible area to recover.