> But in traditional MMO games with grinding and accruing experience and loot, getting killed and losing stuff does seem like a big deal.

It wasn't all your stuff. The bulk of your assets would be in your bank account or, if you were wealthier, in your house. The only stuff you would take out into the wilderness or into a dungeon is whatever you needed for that particular trip. So your losses would be limited to whatever you brought with you, plus whatever loot you had accrued while hunting or mining or whatever.

So yeah if you were only playing for 20 minutes a day and you were constantly dying, I understand why it would be bewildering and upsetting. But if you were actually playing for 5+ hours a day because you were 12 or whatever, it was just part of the fun.