I've never had a quest giving npc/merchant type die in my playthrough previous til this point. I know I lost the merchant aspect of Alvor, but am I screwed in the future? Anything important I might miss out on now?

No idea, but live with the consequences. Makes the 2nd playthrough just as sweet

This happened to me too. I was pretty sad. I forgot to check if I could loot him of his entire blacksmithing shop. Did you look?

Alvor got whacked by a dragon...

Was it on his way to Grandma's house on Christmas Eve?

Sorry...bad joke, but I couldn't resist.

I do like how random events such as this can affect the world--nice touch instead of the usual static neverchanging world.

I looted him and got his key and gold but he didn't have any nice weapons or armor. I figured I'll probably just go kill the wife if I decide to loot the shop. Get rid of any possible witnesses, you know the drill.

Yeah I'm not bummed or anything. I do like how things can change the world you play in, that's awesome. But yeah this just spurs on another playthrough. Thanks for the feedback everyone.

Tough luck. He survived on my game. Sure there's other blacksmiths on Skyrim.