As is mentioned in gedweyignasia's topic by a few other players, several players, myself included, do not treat death as actually dying, but rather being knocked out.
Reasoning
I cannot speak for the others, but in my own case I don't find it reasonable that a character can die multiple times, and be brought back repeatedly. Least of all be given a "get out of afterlife for free" card by the god of death, Myrkul. It doesn't make sense, and seems a wholly unnecessary mechanic. If my character dies on a solo trip, I treat it as them having had to retreat. If my character dies while in a group, I treat it as them having been knocked out. Similarly I always rename my universal Raise Dead scrolls to Smelling Salts to fit with my aforementioned treatment of "death".
The above is the basis for the suggestion(s) I am going to make here, and while I am aware some of them may require some (extensive) work by the developers, I do wholly believe that it will ultimately be for the betterment of the server. For each suggestion I will attempt to explain what positive change it will bring, without alluding to the reason. The reason for all of the suggestions is stated in the paragraph above.
I have decided to divide the suggestions into separate sections, with each building upon the latter. As such anything suggested in the "Character death" section, assumes that the suggestions in the "Knocking a character out" section would also be implemented.
Knocking a character out
This section revolves around a general change of the death mechanic to knock a character out, rather than sending them to the Fugue as a dead character.
1. Knock characters out per standard, rather than sending them to the Fugue
Several players on the server are heavily invested in the RP surrounding their character. Some for the story. Some for the emotions. Some for the bonds they form with other characters. With this change these players will be able to follow along in the RP done surrounding their character falling in battle. No longer are they disconnected from the reactions and actions by their comrades.
2. Change universal Raise Dead scrolls to Stabilize/Smelling Salts
Clerics and other divine classes, capable of causing Raise Dead and/or Resurrection have been heavily sidelined ever since the universal Raise Dead scrolls were added to the game. With this change they get some of their territory back, while allowing non-divine classes to still save a knocked out or dying ally before it is too late. Just like the current Raise Dead option this will also set the target's Hit Points to 1.
3. Make a knocked out character suffer fatigue once they get back up
When a character goes down in combat, they will experience some after-effects once they come to, such as headaches and nausea. Whether through passive regeneration, Stabilize, or Smelling Salts, a time-limited non-removable Fatigue effect added to the character will help maintain the immersion. Rather than standing right back up, and going back to battle at full strength, they are now slightly weakened. Even just a movement speed penalty, rather than Fatigue, will help to properly display the recovery period they require.
Character death
This section handles the issue of a character actually dying, and the circumstances of them being brought back to life.
4. Let the fallen character's player choose death/knockout, but don't Fugue on death
This puts the choice in the player's hands, and lets them decide if/when their character dies. Death can be a powerful story-telling tool, and just like the first suggestion, this will allow a player to experience the outcome of their character's death.
5. Give the player of a dead character the option to reject a resurrection
In lore it is possible for a character to ignore the attempt to raise them. Usually this happens because they feel they have accomplished all they wished in life, and thus have no desire to return to life. Other times it is due to the one attempting a resurrection being of a faith too misaligned with the dead character. A follower of Ilmater, for example, would be unlikely to accept a resurrection from a priestess of Loviatar.
A whole new branch of RP opens up, with this change. A seer might be called in to attempt to contact the spirit of the deceased, and figure out why they are unwilling to return to life. Or closer examination of the body might uncover clues that reveal or hint at a certain faith/pantheon being necessary to bring the character back to life.
6. Require multiple castings of Raise Dead from scrolls too
Use Magic Device is already plenty strong. Currently a single casting of Raise Dead from a scroll is all that is required for the spell to work. Whereas divine classes that actually cast that spell innately, are required to perform multiple castings. This fixes that issue, and levels the playing-field. It will also increase the monetary cost of casting these spells through Use Magic Device, making it much cheaper to find someone capable of innately casting Raise Dead.
7. Make Raise Dead from a scroll add a Level Drain to the target
Dying and being brought back to life is a harrowing experience, where the raised will require time to reorient themselves and reconnect with their body. By adding a non-removable time-limited Level Drain to the raised character, the immersion of such a harrowing experience is kept.
8. Remove Resurrection as a Scroll option
Raise Dead brings the character back to life with 1 Hit Points, and a Level Drain. Resurrection brings them back with full Hit Points, and no adverse effects. By removing Resurrection as a scroll option divine classes regain more of their territory and usefulness. Without one in the group, a new choice is presented to the survivors: Carry their fallen companion to a healer, or raise them in a weakened state. Both options can be difficult to chose, depending on where the group currently is, and their remaining resources.
Other mechanics
This section aims to handle the issue of a solo play, and death mechanic related issues not covered in the above.
9. Let a fallen character decide what to do
Tying into suggestions 1 and 4 above this is all about player choice. When a character is knocked out, they should be presented with an option to either: Remain knocked out, die, or respawn at a safe location. With the possibility of changing their choice later on. Except for re-spawning, of course. No changing that.
This allows a fallen character to wait in place for someone to come find them, just like they can now; or re-spawn at a safe location, also just like they can now. But without the need to go to the Fugue at all, as to allow various types of RP mentioned above.
Re-spawning in this case should be treated as having retreated from the battle, and the hardships endured during the escape is what takes away experience. Adding a penalty in the form of Fatigue or Level Drain should only be considered if the loss of XP would otherwise de-level the character, or if they are already max level.
10. Remove the Fugue and Myrkul
With all of the above, there is now no need for the Fugue or Myrkul to exist as an area on the server. It will free up (some) resources, and also remove any OOC knowledge of a character having died.