I'm so sorry - for some reason I thought you'd gotten an answer elsewhere already, so responding here would've been superfluous!

But yes, a character can be killed, and come back as a 'reset'. They'd still need a death penalty other than memory loss, though, since a reset character shouldn't be able to regain all memory of their previous time in the city. A reset can't be used to escape a death sacrifice.

Again, I'm really, really sorry about the delay.