I liked when there was a spell that allowed for heroes not to perma-die after falling in battle. I'm not much of a fan of the current wound system, but I know it's been well received by most of those who are pretty vocal on the forums. I'm sure it's a feature that will stay :/
It just feels silly to me when a hero dies 4 or 5 times and just warps to the nearest city with another akward 'wound' like pneumonia.
If anything there definitely needs to be an increased chance of heroes permanently dying each time they are killed. Perhaps make a 'resurrection' spell that brings back one of your heroes if it's such a big deal to people.
Or maybe just allow the wounds to happen if you end up winning the battle in the end, but if you lose the battle completely then the hero should perma-die...
Anyway, this topic's been talked to death here on the forums and it's unlikely the dev's will make any changes no matter how awkward the mechanic plays.