perma death is something that just sits very hard with people, especially as you cannot save a game and may run into situations that kill you by just plain bad luck...and the machine cannot differentiate between stupidity and bad luck.
However given the world of SR with the immense magical and technical capabilities, I don't think being healed again from any fatal loss of health or essence is such a stretch to imagine. If they can clone pretty much anything and AIs can become conscious, why not heal up your essence?
Of course it is a bow towards playability, but honestly: would you like to do a new char, everytime you lose in PvP?
I think what would be equired in your exmaple is to heal the essence loss cause first, then revive, the heal actual essence loss - which can be quite expensive...