If you talk to Tulip in Underworld, she will tell you that whatever makes them what they are, doesn't work on them. This leads me to believe that it may have been tried before and didn't work, Don't know anything about the dying part though.
its a reference to Fallout 1. FEV (original strain) only works on non-mutated Humans
However, creating new Super Mutants proved to be a hit-or-miss process. The great majority of Super Mutants produced by the Master, and later his lieutenant, in the Mariposa base's FEV vats were big, dumb brutes. Physically, they were vastly superior to pure-strain humans, but they possessed the intelligence of children. The Master was certain this mutational randomness was related to the amount of radiation damage suffered by an individual: humans who had not been exposed to much of the post-nuclear environment's radiation produced more intelligent Mutants after their FEV infection (see his personal diary for his thoughts on this). His lieutenant, however, had a different theory. When the Chinese nuclear bombs hit the original West Tek Research Facility and turned it into the region known only as the Glow, the impact of the nuclear shockwave cracked open a few nutrient solution tanks filled with FEV. The nuclear bombs' radiation then mutated this FEV into an airborne strain of the original virus, but this new airborne strain of the FEV did not have any real mutagenic effects on human beings. All it did was inoculate any person infected with it against the original, mutational strain of the FEV, acting as a form of vaccine and giving exposed creatures some limited resistance to the FEV's mutational effects
But since there has been no airborne FEV on this coast i can only surmise that the Vault 87 strain of FEV just breeds Dumb mutants