I am a new DiF player, but I really like the risk factor surrounding pilot mortality. The danger is part of the fun and one of the main factors that draws me to the game. There is always that knowledge in the back of your mind that your #1 ace pilot might get killed when he sorties. It makes your choices when playing that much more exciting and challenging. Now, if I had invested the time and effort that some of the top players have put into their pilots, I suppose I might feel differently, but so many games in other genres shy away from the finality of a player-character's (pilot's) death, it has been a refreshing change to see it modeled in DiF.
If there is going to be a change to the system, I would vote for pretty stiff penalties. There should be a sting when you revive a "dead" pilot.
If not this, then how about an optional mode that a player can select when they create a character: A "hardcore" (ala Diablo 2) or "ironman" mode that makes death for that pilot what it is in reality - final. These might be tracked separately in the ladder or these pilots could receive XP bonuses/medals as an incentive. Non-hardocre pilots can be revived and might still be penalized but it wouldn't need to be as severe.