my take on this, after playing CoreKeeper:
a middle point between "keep everything" and "drop everything" is a really nice thing, like keep hotbar.
the temporal gear enhanced inventory is also a nice option for mid-to-late game players to give better inventory retention on death and can make some games with drop inventory require more thought into the gear you keep inside those sound slots, but it doesn't really change the duality of "keep everything" vs "drop everything" that still exist beyond making the latter closer to the former.
some people like that challenge, others don't, and some people fall in the middle. I discovered I fall in the middle after playing a few games that provided that middleground, but I have no idea how to approach it in VintageStory in a fun way. CoreKeeper is a boss rush RPG based sandbox, and VS is a survival craft sandbox, they are very different in the power scaling and progression. maybe someone can mod the ideas here in to test them out?
EDIT: yes I forgot you keep clothes and armor normally, been a while since I played and it's not like I died too much anyways. also, gravestone mods are really good for "drop inventory on death" games, you can rage quit and do other things without fearing your items despawn or get scattered across 2 timezones(like in other block game tm).