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You can also store gear in your "stash" which is communal and persistent across all characters, so even if you lose an epic item, you can have another item to fall back on.
Plus, on rare occasions, an item will come with the "soulbound" trait (which will be purchaseable for a hefty fee in an upcoming patch) Any "soulbound" items will survive your death, so sometimes it's worth keeping a slightly lower tier item on you.
What you probably don't realise is that there isn't actually better loot drops for the harder modes yet, basically the loot each map is random so sometimes you'll get lucky with some great drops, and sometimes you wont.
I've tried it on easy to insane ( with newgame+ when you finish ) and overall there was absolutely no difference for loot with difficult levels. On each level of difficulty you will sometimes get some great pieces, and sometimes not, it's just random, and overall seemed the same.
Interesting rant and rage quit (and attempt to hold me hostage with a negative review to change game design) Let me be clear, the death penalty is not changing.
Death is part of the game, expect to die. This is why so much gear drops, to account for this.
While I have yet to implement multiple character slots, there is a way to delete your progression listed in the FAQ you obviously didnt read.
Vendors sell equivalent and often times better gear, so check often, and with the next patch you will have the ability to soulbound items at drudgers keep.
If you dont want the risk, play on easy, there is absolutely no change to the quality of loot that drops, besides the single quest reward. I offered this version of mechanics for folks like you who at first death would leave me a negative review.
You will gain xp faster on hard and if you are careful picking only the fast (repeatable) missions they can be done very quickly and easily which gives more boons and just makes it even easier still. I do the assassinate the boss ones in minutes. You can almost run straight to them sometimes depending on the map and how easy the warp point icon is to see on it.
I also suggest bows if you have not tried them. I am not great on the blocking thing and getting right in the enemies face where they can hit you is often very painful. Not sure how ranged magic fares but bows are sweet.
1 Do what i do only ever equip soul bound items yes they usually are weaker but they stay with you forever no matter what congrats you can now die every 2 minutes and not care less
2 If you find your on a particularly hard or annoying mission you just want done in my case i hate timed missions in any game then set your difficulty to easy for that mission
i hope this helps you i lost everything absolutely everything first time i died and i wasnt too happy about it lol so i can feel your pain