Buy to play has to have either a heavy focus on bringing in new players rather than retaining existing ones, or some other way of bringing in sustained revenue. Spark of life seems like a reasonable way to do that. My day by day play isn't interrupted by having to get a credit card out, I'm not buying power, etc.
With that in mind, needing to start again every time you run out of health would either make the gameplay excessively conservative, or have you making that transaction way more often than intended.
Also, it isn't a game where everyone and everything is trying to murder you. You may be left unconscious or left wounded but alive. The soul is a key part of the game and its like to the world is not so easily broken. Eventually it will be, but as long as the soul can find its way back you survive - it's Elyria after all.
Fame and death or linked because notable people dying has an impact on the wider world. A king dying is an important event. I guess it's like they burn brighter.