Are you better off dying at the end of Keep on the Shadow Fell?

In the game we play we switched over three of character at the end of KotS. This was done with a small set of encounters where the changing characters where kidnapped and the rest of the party had to rescue them before moving on to Thunderspire Labyrinth. Therefore half the players have changed their character to new level 4 characters. This means that the new character have two magic items, Level 5 and 3, and the same money as a level 3.

Our party ended with the following characters and magic items:

Bob Human paladin - Shield of Protection Heavy Shield Level 3, +1 Aecris Level 5 Longsword

Frieda Eladrin Rogue - Vicious Short sword +1 Level 2, +2 Magic Dagger Level 6

Eric Elf Cleric - Symbol of Battle +1 Level 5, Bloodcut Hide Armour +1 Level 4

Glen Dwaven Fighter - Amulet of Health +1 Level 3 Black Iron Scale Armour +1 Level 4

Eligos Tiefling Warden - Dwarven Chainmail +1 level 2, Safewing Amulet +1 Level 3, Horned Helm Level 6.

Rodney Human Wizard - Magic Wand +1 Level 1, Elven Cloak +2 level 7, Bag of Holding Level 5

This averages out to each character with a level 4 and a level 5 item. So the items given out in KotS are higher levels but the characters have no choice in them.

In our case the Wizard got a wand, when really wanted a staff and Rogue ended up with two weapons. But other than that the items fell quite well, this surly can not be the case with all parties? We had three defenders in a six man party, where most five man parties only have one. Surely this defender be blinged up with Magic plate Amour, a magic shield, most probably a neck slot and a magic weapon. Leaving the rest of the party felling short changed.

Having the choice of your two magical items puts you in a lot better stead to max your character and choose with features you want, so surely the power gamer is always going to want to die and respawn with new shinny stuff that fits their character.

This does then lead to the next point of what happens to the old characters stuff? Purely as a balanced game view point the old characters stuff should die with them, or the emerging character should arrive with nothing so that the is the same balance of treasure. But the game is firstly and foremost a role-playing game. So why would a level 4 hero not have earned any treasure? And why would the remaining heroes not use the dead party member’s equipment? I have the changed characters kidnapped with all their stuff, but I guess if they died they could be buried with their weapons in a Viking style funeral.  

And finally what about all the gold? Our party had one character holding all the gold firstly Eric the Cleric and then once we found a bag of holding it went in there and was held by the wizard’s familiar. So as the Wizard didn’t leave the party does the new part have all the treasure? Therefore essentially stealing the missing party members share?

On the whole is seems that as KotS as a publish adventure has treasure at random, therefore will not always fit nicely into the party. But is this not what going into dungeons is about? The party can not always expect to get stuff that fits their character’s perfectly, but on the flip side if you keep killing off characters and bringing them back you will never have magical items more than one level higher than you.