Heroes not dying isn't a problem, it's a design decision - I think the 'penalties' from dying are pretty elegant actually, and the enforced multi-turn out of comission is also a worthy penalty.
If you don't think so, play on the higher difficulties - the AI simply isn't aggressive on normal, but above that, you can lose cities due to heroes being out of comission.
I'd rather have the penalty system thats bearable and can be played around than the 'welp, my hero that I've spent the last four hours developing just died, reload save' system.
One of the poor design decision IMO. Heroes should die unless they either have a magic item that can make them teleport right before death or a spell does this. And if hero's can die then you can have spells such as Resurrect and raise dead to bring him back.
Ressurrect should be a high level spell that brings the hero back to live at full HP and all Wounds (penalties) healed
Raise dead - Should bring Hero back to life at 1/2 HP and they get a wound.
You could also add varied spells along these same lines.
Currently the "Heros don't die Concept" is very lame and caters to those who want everything handed to them in the game. And yes I am talking about those who have the argumant that "I have spent time developing my hero and I don't want him/her toi die" This argument is rediculous in a stratagy game (or any game for that matter.)
