I do appreciate the perma death perspective, but if you have tried to pvp, you will see that finding matches can be pretty hard. Looking at the forums, there are a a lot of posts on it, so it is obviously an issue. My target is player retention, perma death is fine, but you achieve a close proximity via death with an associated cost, which is what I have proposed.
Pushkin, you may be correct in that is should be pay on death or loose the unit. It seems reasonable that if you cant pay to raise them then that you have lost the unit for good, or you can only resurrect the units you can afford to at the time.
That said, I think that you should not be able to instantly leave a battle. If you are losing, you should pay in crowns if you want to instantly leave, resources if you want to leave on a timer where you try to retreat.