@faraday A lot of people have also been conflating 'I think there needs to be risk up to and including PC death' with 'OMG ONLY PC DEATH COUNTS AS RISK' or 'BUT POINTLESS CHARACTER DEATH IS MEAN!'. Its a post-apocalyptic world. Things will be deadly. If there is absolutely zero risk of death, then the post-apocalyptic theme starts to break down very quickly.
Without any risk of death... what is there to really fear in the ruins of your destroyed society? 'My stuff might get stolen... but its okay because I'll somehow get new stuff so I won't die of starvation' Where's the risk? Where is the ACTUAL risk? There isn't any. Because nothing will actually stop your character. Capture, torture, loss of gear... you will always prevail. There will always, in the end, be a happy ending. You don't actually have to scrabble to survive... because you just magically WILL. Whether your character knows that or not? YOU DO. And that WILL influence IC actions along the way.
Now suddenly you don't have to worry about low supplies, because magically there will always be just enough. Foraging for clean water and food? Not a concern. Those ghouls/zombies/raiders at your gates... feh, you will overcome. There's nothing to lose. Got kicked out of your base? You'll get handed another. There will be no heartrending losses along the way... because in this magical world... there is no death. And no, NPC death isn't going to phase anyone. You don't get attached to and form attachments to or relationships with NPC's. NPC's are the red shirts of the Star Trek world. The random, nameless dudes sacrificed to the PC Gods to make it SEEM like there's danger... when really there isn't.