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The topic is rather simple: What if a failure was a permanent end-stage for a quest? That once you failed, you cannot try again, you'd get something for completing a quest, but its not the same as succeeding. For example "The damsel died and so ends your quest. Good effort tho!"
What would that change? What problems would occur?
I skate to where the puck is going to be, not where it has been -Wayne Gretzky