A few random comments:
I like the rez system as is.
The death penalty (armor damage) is a step up from most MMOs where armor gets damaged per hit.
The death penalty is also a step up from most MMOs that debuff you for a duration.
I admit that there is room for improvement regarding the death penalty. It's not perfect.
I'd prefer a system that makes it harder to progress. Getting stuck is not fun, but learning to play to get unstuck is what makes games the most fun.