For many the game would become hardcore if they would turn off their addons.
The game is easy if you use addon which even tell you that you are being attacked and need to evade AND even tells you what button to press. Same for dot and hot timers.
We already have one real hardcore mode, and that's inventory control. That's going to get worse with armory system (though am totally looking forward to armory system). Your idea of losing all items when you die would solve the inventory control issue, but nooooo! Also, I find it hard enough to ever delete an alt (have 18 characters) so making a new one isn't possible, and deleting it and starting over if I could...NO!
This can work only in games where you actually have full control over what happens and your character. Like Diablo, for example. Adding this sort of challenge makes not much sense as overland where it's more or less would be semi working isn't any hard to begin with, vet player simply won't die without any lag or irl interruption while vet content is about wiping and learning that way kind of like souls like game. So wrong game in that regard.
I always wanted a battle royale styled mode. We spawn with maybe 30 other players. We harvest materials and craft in our inventories. Chests scattered throughout the map. No item levels just types and rarities. With a system that shrinks the map over time so we get that final showdown. Maybe with stealth pots replacing building and only weapon, mages and fighters guild abilities available for use.
Being an altaholic (done the scrying intro quest more than 150 times) I have no issue with this, but I know where I am likely to die (not counting lag deaths).
So do I try to solo Fungal Grotto on my lv 10 no set newbie or save the giant nord from coldharbour?
My point is you CAN play the game forever without getting killed if you don't try harder and harder places.