1. Include an optional mode for players to be able to keep all their weapons and armor, but nothing else on death. Maybe even just their equipped items, if that's too lenient. I currently am not interested in the game with the current item loss feature, but I would play constantly if it were updated to letting you keep weapons and armor. It's for the same reason that you let people keep their skills on death, I want to be able to progress my character's armor and weapons as well as skills. Please make this either an optional feature in the options menu or on character creation. There are tons of people who like the "permadeath" feature, so they'd choose it for themselves. I think you'd attract more players (myself included) to the game if you updated it. You could also have a separate server if that does not sound appealing to you.
2. If you do not want to implement number one, please at least list on the Wiki that all items are lost on Death under the "Death" page.
I don't expect number one to be implemented, but I want to love this game so I thought I would try seeing as this is the suggestions section. I would seriously be playing this constantly until I had run out of things to do if the item loss was changed in one of the ways I listed, and I think more players would be attracted to the game. I know a lot of people will want to say "If you don't like it, go to a different game". Well there is no other game like this, so I'm really hoping that things will change. Remember that the original Fallout games had no item loss (which is not what I'm suggesting, of course) and they're fun games, fans of those games may not be attracted to the item loss in this one. without the item loss, it would essentially be the Fallout multiplayer that EVERYONE can enjoy. The game could become extremely mainstream, I personally would advertise it to everyone I know who's interested in these types of games. Please consider my suggestion(s). If any devlopers are reading this, thank you for at least taking the time to read the whole thing. =)
Like I said, I want to love this game; but I really can't at the moment. I understand if you do not want to change the game in this way, I'm just really hoping that you do.