Yeap. Death will sting. You won't be looted (sorry, not that hard core) but you are not going to want to die.

Source: KS Comments - April 09, 2013

Heck yeah there will be a death penalty otherwise we end up playing whack-a-mole all night.

Source: KS Comments - April 09, 2013

death spam, communication such as a herald are already in the design. However, we also have some new improvements on that concept too... MUAHAHA. 

Source: KS Comments - April 02, 2013

Death spam is confirmed!

Source: KS Comments - April 02, 2013

For battles to be meaningful, I believe that Camelot Unchained needs to have a death penalty that stings a little bit. No perma-death, no corpse looting (there are rewards but that is complicated) but also - no instant rez (rez takes time), no self-rez (even for healers), dead = dead, when dead your body can be burned/magically attacked by the enemy (takes time) or you can release, no item decay on death (use/enemy attack based only), limited bind points (there is a healer + crafter mechanic that can come into play), “rez sickness” like mechanic and last but not least divine intervention. 

Source: KS Update 11

When you die, and you will die; don’t expect to simply pop back up and get right back in the fight. It is going to be a lot more complicated than that. IMO, that gameplay style embodies some of the problems with many modern MMOs, death without consequence, “easy in” and “easy out” RvR, 6-year old kids’ soccer match, etc. RvR combat must be fun, challenging, exciting and losing must hurt a bit or it means nothing. 

Source: Foundation Principal 2