@Lornsteyn
I feel that you're casting too wide a net with the 'wasted time' paradigm. That kind of paradigm fits things that can easily and reliably be reclaimed, in whole, by re-investing a similar amount of time that you spent getting the things you lost.
If you have to return to your last save point, and walk for five minutes to get back to the boss you lost on (without any significant challenges along the way), or have to watch a cutscene again before taking on the boss, that's certainly wasted time. If you lose money but there's an infinite supply of money, that could also be reasonably seen as wasted time. I'd also argue that the "find your corpse" element of WoW's death is also wasted time, although it's less to recover what you already had, and more to avoid a harsher penalty.
On the other hand, permadeath in a single-character party should
not be viewed in the paradigm of wasted time, since you're not just losing the time you invested into the character, but also the "story" of the character, the gear/items the character had (which you might never see again even with thousands more hours of time), and the progress you made with the character (since it's not guaranteed or even reliable for you to be able to make it that "far" in the main arc again). Permadeath in a multiple-character party (though rarely seen in systems where you can continue after a total party wipe) is certainly not appropriate for this paradigm either since the character can't be reclaimed with time, and the entire course of gameplay changes. If you lose money and money is in
finite supply, that's also inappropriate to view in the paradigm of wasted time, since your lifetime max potential of total money that you can spend has been reduced (and can't be recovered by simply investing X more hours). Finally, any time being defeated causes you to lose items, equipment, buffs, or anything else that
cannot be easily and reliably recovered, I feel it's also inappropriate to view it in the paradigm of wasted time. Rather, it's a material loss that you may have to cope with for a long time (or even forever).
I feel that all of these penalties in the paragraph above should instead be viewed in the paradigm of 'risk and reward', where every action the player takes is done with the goal of either permanently improving their resources/power, or making progress toward a large goal (like the narrative arc of the game), while putting at risk the resources/power they have already earned every time they do it.