Dead is Dead. If you die you delete your save and start over. Will you ever do this with one of your characters? I might.
I guess it could be fun to try as a gimmick, but it really doesn't make sense for an open world, non-linear game like Skyrim.
Unlike dungeon crawlers, there is simply no finish line you are striving to reach. Instead, the "point" of a TES game is simply to explore new locations, meet NPCs, take on side quests and progress as a character in the world, dealing with the main quest if and when you ever feel the inclination.
A "permanent death" feature holds absolutely zero interest for me, mainly because if I am not dying FREQUENTLY, then the game is not challenging enough and needs mods like FCOM and Duke Patricks to make combat more challenging.
Any conceivable version of Skyrim or Oblivion where it would be actually possible for me to play the game for 500+ hours without dying would mean the game is so ridiculously easy that it would be unbelievably boring to play.