Game Informer - Permadeath and how it Affect Us

[RPGWatch]

An editorial at Game Informer discusses how and why permadeath in games affects us.
A snip:

Emotional Aftermath

In games with more emphasis on their narratives, characterization becomes paramount when extracting lasting emotions from the player. You wouldn't mind being responsible for someone's death in Mass Effect 2 as much if a bond hadn't been created beforehand. Completing loyalty quests, entering romantic relationships, and holding engaging conversations with characters creates an attachment to the NPC that ensures the end is all the more draining. You can even argue the point that the actual life or death decision isn't as important as the characterization leading up to it. You feel regret because that character would have been helpful in later, but you feel guilt because you actually cared for them.