There shouldn't be a resource/gold cost to resurrecting. Instead you should have to start again from the beginning. In GW1 your max health and energy was reduced each time making you less fit for combat, this effect would automatically reset as soon as you went to a town (aka GW2 capital city). In GW2 you could replace the energy aspect with an effect that lengthens your skill cooldown times to achieve something similar.
Having to start all over again from scratch is even more tedious and odious than just a repair bill. Making it progressively harder to do something that has already proven too difficult for your group can only lead to more frustration and a greater probability of failure. No one wants a guaranteed God mode win but having to do the same thing over and over and over again because you failed to do one step perfectly is frustrating. Think jumping puzzles, where the death penalty for failing to suss out invisible obstacles is often starting from scratch. Not fun.
Failure in PVE, especially dungeons, is often due to ofher players rushing through the content and not making sure everyone is ready before beginning fights. This happens regularly in PUGs and is part of what makes them frustrating. Add to this people raging over their repair bills and the hassle of corpse runs, etc and the whole thing quickly becomes an exercise in anti-fun.
Death penalties like penalties in real life are a form of punishment for doing something that someone else doesn't want you to do. Being punished for playing a game is not fun and therefore does not belong in games that are supposed to be fun. Too many developers use sticks rather than carrots to nudge players in this or that direction and the sad thing is they rarely shape behavior in the desired way but do tend to cripple the game experience for those who hate them. I prefer rewards over punishments in games and in real life.
Did you ever play WoW? It was not uncommon for tanks to refuse to enter dungeons unless the group agreed to pay their repair bills, which could be outrageous. Other people desperately seeking tanks would offer to pay their bills if they would join the group. Seems the whole process of getting a tank to play would be easier without repair bills and people could spend more time playing and less time spamming chat.