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It's not a penalty, its a tax and taxes suck.
But you can avoid it sometimes - you get the thunder bird on some runs and the penalty reduction system means that early game continues to be rewarding for high level characters; if it was flat, early areas would be either OP for low level characters or a time-sink for high level characters. This is actually good, clean design and you're progressing at the right pace.
Keep in mind you can usually make a few upgrades after every run - what more do you want?
The way they penalize you does feel weird to me though. With a 40% death/abandon penalty it made it seem like there was some way to go back to town using checkpoints or something but there isn’t.
Kind of a ♥♥♥♥ system that lures you into the false assumption that you're losing out as opposed to replacing the chapel with a building that let's you gather 5% to 30% more resources.
Just ignore the death penalty, it's not relevant and it's misleading.
I want that but without having to drop any resource I find by default. If I had a way to, lets say just end the run and go home at specific points, the whole system would have a strategic aspect. Do I push further or don't risk it? But this way it's just annoying.
It's not a big deal in the end. It's just bad design to punish by default without means to avoid it. Like I said, it's not even punishment at that point. It's a tax.